Market segmentation: the process of breaking down a whole market into smaller parts in order to satisfy particular customers’ needs or wants

• May be based on geographic, demographic, psychographic or behavioural aspects

Product/service differentiation: differentiation involves providing greater customer value and making the business’s product stand out from that of its competitors.

• Examples – having a wide range of product models, design, packaging, after sales service, customer service, warranty, advertising, etc.

Product positioning: the distinct image or identity of a product that would set it apart from its competitors.

• Examples – positioning by benefit, price, quality, direct comparison (e.g. Coke/Pepsi)