Syllabus: AQA - AS and A Level Business
Module: 3.3 Marketing Management
Lesson: 3.3.3 Making Marketing Decisions: Segmentation, Targeting, Positioning

Introduction

This article supports teaching of AQA AS and A-Level Business – 3.3.3: Making Marketing Decisions: Segmentation, Targeting, Positioning, a core part of the AQA business syllabus. This unit sits within the broader Marketing Management module and introduces students to the process businesses use to identify customer groups, choose who to serve, and decide how to position their offerings in the market.

Mapped directly to the AQA specification, it also supports Gatsby Benchmark 4 by linking curriculum learning to real-world marketing and business decisions. Delivered effectively, this topic fosters students’ commercial awareness, critical thinking, and decision-making—vital workplace readiness competencies.

Key Concepts

Students must understand the full STP process, including:

• Segmentation: Dividing a market into identifiable groups based on:

  • Demographics (e.g. age, gender, education)

  • Geographic location

  • Income levels

  • Behaviour (e.g. loyalty, usage patterns)

• Targeting: Evaluating segment attractiveness and choosing a strategy:

  • Niche marketing (targeting a specific, narrow group)

  • Mass marketing (targeting a broad audience)

  • Differentiated targeting (different offerings for different segments)

• Positioning: Establishing a product’s place in the market using:

  • Market mapping to visualise competition and gaps

  • Value proposition clarity

  • Aligning product features with target segment needs

This topic also interlinks with earlier syllabus areas such as understanding customers, market data, and pricing strategies.

Real-World Relevance

STP is central to every marketing strategy. Consider these contemporary examples:

• Netflix uses behavioural segmentation by tracking viewer habits to suggest personalised content, retaining diverse customer groups.

• Gymshark targets a niche market of young fitness enthusiasts using demographic segmentation, pairing it with strong influencer-led positioning.

• Tesco positions itself differently across segments: premium with Tesco Finest, value with Tesco Everyday, and local with Tesco Express—an example of differentiated targeting.

These real-life case studies help students link theory to genuine commercial decisions.

How It’s Assessed

In AQA exams, this topic appears through various question types:

• Short answer questions: Test definitions and segmentation methods

• Data response questions: Require application of STP to a business scenario

• Extended response (20-mark) questions: Evaluate student judgement on the effectiveness of a chosen STP strategy

Common command words include:

• Analyse: Break down how a business might choose between mass and niche targeting

• Evaluate: Justify the positioning strategy of a firm using market mapping

• Recommend: Based on case study data, suggest a segmentation strategy and defend it

Students are expected to apply the STP framework accurately and justify decisions using marketing logic and external environment context.

Enterprise Skills Integration

This topic is a natural fit for developing:

• Decision-Making & Problem-Solving: Students assess data to choose the most appropriate segment and positioning

• Commercial Awareness: Understanding customer needs, market dynamics, and strategic alignment

• Data Interpretation: Using market mapping and segmentation data to drive strategy

Enterprise Skills simulations and tools enable active learning here. For instance, through role-play or simulation tasks, students can ‘run’ a product launch and justify their STP choices based on competitor profiles and customer data.

Careers Links

Mapped to Gatsby Benchmarks 4, 5, and 6, this topic prepares students for careers such as:

• Marketing Analyst – using data to identify target customers

• Brand Manager – positioning products in crowded markets

• Market Researcher – collecting data to inform segmentation

• Sales Executive – aligning product messaging to customer needs

Using tools like Skills Hub Futures, careers leads can deliver mapped sessions that reinforce this topic with virtual employer challenges and workplace simulations. These sessions are also backed by our Employer Engagement Framework, connecting classroom learning with live case studies and workplace encounters.

Teaching Notes

Common Pitfalls:

• Confusing segmentation with targeting

• Forgetting that positioning depends on both customer perception and competitive landscape

• Over-simplifying market maps (e.g. only using price and quality axes)

Teaching Tips:

• Use real marketing campaigns for case analysis (e.g. Apple vs Samsung)

• Encourage students to create market maps for products they know

• Reinforce that segmentation is not just demographic—behaviour and psychographics matter too

Recommended Activities:

• STP Workshop: Groups design and pitch a new product, justifying all STP elements

• Persona Creation: Students build customer personas from sample data and present a matched positioning strategy

• Skills Hub Simulation: Use STP scenarios where students decide how to position a product in response to changing customer insights and competitor actions.