Abstract
Segmentation is the process of dividing the market into segments, targeting is the process of deciding which and how many segments to target, while positioning is the process of creating an image for the product in the mind of the target audience. Segmentation variable or bases are the dimensions or characteristics of individuals, groups or businesses that are used for dividing a total market into segments. When choosing segmentation variables, marketers must consider those that relate to peoples needs for, uses of or behaviour towards the product or service. The segmentation variable must be measurable. Variables can be divided into those that relate to basic customer characteristics and those that are product related behavioural characteristics. Marketers generally select a combination of variables. Geographic variables include climate, terrain, natural resources and population density. A company can decide to operate in one or a few geographical areas, or operate in all but pay attention to local variations.
