ELI5: Explain Like I'm 5

Segmenting and positioning

Segmenting and positioning is about figuring out who your target customers are and how you can get your product or service to stand out from everything else that's out there.

Imagine you have a toy store and you want to make sure that people come to your store and buy toys. You would want to think about who your target customers are - are they parents of young kids, teens, adults - and what types of toys they might be looking for. Then think about how you can make your store stand out - do you offer more selection, better prices, or even more services like special events or toy repair?

Once you have figured out who your target customers are and how you can make your store stand out, you can start to segment and position your store. That means you can decide how to market your store to each group of customers and what messages you want to tell them. For example, if you want to focus on parents of young kids, part of your message might be about how quality, safe toys are hard to find, so your store is the best place to go.

Segmenting and positioning helps you make sure your store stands out from all the rest and that you are giving the right message to the right customers.