This lesson examines the strategic process of segmenting financial services markets, selecting target segments, and positioning products effectively.

4.1 Market Segmentation

Segmentation is the process of dividing a broad market into smaller groups with similar needs . The IBSL curriculum includes “Segmentation targeting and positioning” as a core topic . Bases for segmentation include:

  • Demographic: Age, income, life stage.

  • Psychographic: Lifestyle, values, attitudes.

  • Behavioural: Product usage, brand loyalty, transaction history.

  • Needs-Based: Grouping customers by specific benefits sought.

The University of Warsaw syllabus notes that segmentation now involves “Identifying, segmenting and selecting potential customers” using “Technologies supporting CX/MAP” .

4.2 Targeting

Targeting involves evaluating segments and deciding which to pursue . Banks consider segment size, profitability, accessibility, and alignment with strategy. The University of Warsaw syllabus includes “new forms of product/service: Subscription” as an emerging targeting approach .

4.3 Positioning

Positioning is creating a distinct and valued image of the bank in the minds of target customers. The IBSL curriculum covers “Positioning and repositioning” . A strong position differentiates the bank from competitors.

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