Segmentation targeting and positioning approach in marketing

Document Type:Dissertation

Subject Area:Technology

Document 1

The Segmentation of demand refers to the process of profiling and dividing potential customers in a market using different variables (Choi $ Chang at al, 67). The method of segmentation helps in determining the market tendency and characteristics. This segmentation, positioning and targeting approach model allows marketing consultants, employees and business owners to come up with the most useful strategies of marketing that bind a brand, product or business so that they may profit more. This paper aim at studying the ideology behind STP and the mode in which it is applied in different industries by various companies. Activities behind STP strategy. Segmentation Segmentation is the first stage in the model. It involves brainstorming in the quest to find the most appropriate market segment. One is expected to list all prospective l markets that you can see a niche. Some companies have only one specific market they want to target while others have more than one segment market. For example in the world of technology, phones to be precise, companies separate buyers with their needs. Some customers are interested in quality cameras others are interested in storage space while others are interested in gadgets that have high technology. Proper market segmentation enables the companies or owners become competitive and gain more profits. Time and again, the debate on the factors that should be looked at while identifying the potential markets. Individual, economic, social, geographic, behavior, demographic and physiographic are some of the factors that have been considered by Philip Kotler (Choi $ Chang at al, 114).

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When choosing the target market, the following should be taken into consideration. Successful identification of various segments is the beginning of successful marketing. The following are factors to consider while conducting market segmentation. • Action ability-This is the ability of an organization to provide an appealing offering that is appealing to the customers. Action ability enables where the organization tries to identify the different niche and outshine the rest of the service providers. • Sustainability-the market segment identified should be able to be profitable enough. The internet era has eroded the use of these traditional channels. Behavioral targeting is a product of the growth of the internet. Most marketers use online advertising to reach their potential clients. There three kinds of market targeting which include; niche marketing, undifferentiable and finally differentiable channels (Armstrong, Gary, et al 103).

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Determining the right target market depends on the services or products offered. this means the supply is more than demand hence the profits tend to go down. In cases where goods produced are similar but not identical, the viability of the business is likely to be bright. The buyers would have a wide range to choose from according to the preference. Substitute products are alternative products that could be used instead of the normal. When a substitute product costs fewer buyers would shift their interest from your goods, This could threaten returns of your company. To correctly position a brand an organization may need to make their services or product unique. They could also probably make their products attractive in the eyes of the consumer (Choi, Chang at al, 89). The companies mostly do informative advertisement where they tell consumers what the brand Entails, how it works and probably how it stands out.

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When a brand has a strong position, it is so hard to reposition it. Positioning is one of the viable marketing strategies. Shao, Alan at al, p. In this case, you would say Ketepa tea is healthier and tasty Positioning by benefits-While advertising your product you try to tell the target market the importance and benefits of your product. For example, Ketepa Green tea flattens the tummy and reduces chronic diseases. Positioning according to target groups-This is where you advertise focusing on your specific audience. For example, Johnson brand could promote a variety of their baby products To know the position a brand occupies in a consumers mind techniques such as correspondence analysis and perceptual mapping are used. Again this company has another segment of customers who needs functional foods and candies.

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To attend those, the company places them in the forefront and it has a team that prepares colored, flavored candy that consumer’s love. They are able to choose from their versatile lines of dry honey, dry molasses and dry malt products for use in all of your chocolate, coating and candy applications. Archer Daniels Midland applies both what we call business to business (B2B) segmentation method and business to consumer (B2C) to serve his clients. Mostly the B2C segmentation method applies a lot where the company groups the consumers according to their lifestyles, behavioral characteristics, their social class and the like. These two types of the chocolates target the customers who live a very luxurious kind of life. Not all the client can afford to invest huge amounts of money to such products and so the company has other low priced chocolates which are packaged in different sizes.

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Look at the diagram illustration of their plan in this link https://optimiseandgrow. online/wp-content/uploads/How-To-Use-Segmentation-Targeting-And-Positioning-For-Easy-Growth-How-To-Create-A-Positioning-Map-768x768. png How STP is applied in car industry in Japan First Segmentation focuses on intensifying marketing and sales. Again, it’s using open displays to track her and target the potential clients. Considering the different demographics of her customers, the company has done a good targeting and focused on the ages, gender and income in her products. The company targeting Japanese women more when it first produced the first T360 machine. In its marketing campaigns, the company did not ignore the facts that the Japanese men and women have different preferences and it therefore came up with another model for men. They had already identified two different customer segments. Some products are designed for men but most of the time purchased by the wives.

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The marketer will ensure the products meet the target market demand as well appeal the purchaser. • Targeting market approach enables a company efficiently compete with the competitive markets. The size of the business is not an issue provided the firm has identified a market niche. The marketer should no longer worry about reaching every potential audience who use their goods. • Market positioning help firms to cope with changes in market trends. The marketer has to keep watch on the new developments and competitive advantages that arise. Manager and marketers made to be active, dynamic and alert (Hariharan, 217) • Positioning helps to create consumer goodwill and boost loyalty. Systematic brand positioning helps in building a company’s name, brand, and product. The company’s products become famous, and buyers can create goodwill in the process they become loyal to the particular brand.

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When Motor Honda Company is launching a new car model, they have to do intense awareness to the potential buyers so that the customers can understand the new modifications. • Positioning helps to design the best promotional approaches. The marketers do this following the expectations of buyers. They make sure they are aware of the consumer needs once they have satisfied them they determine the best ways to promote (Choi,). Companies like motor Honda, front farms, and Unilever that use this marketing model have recorded great sales and profits. marketing: an introduction. Pearson Education, 2015. Lynn, M. Segmenting and targeting your market: Strategies and limitations. Cornell University. and M. Lowe. Innovation, market segmentation and entrepreneurship in services: The case of the hotel industry. Huang, Shu-Ching. The study on marketing strategy of B&B conducted with combination business in Taichung City.

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Information Technology & Tourism 15. Shao, Alan T. andYeqingBao. Unique positioning to an elusive market: Targeting teenagers. New Meanings for Marketing in a New Millennium.

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