Marketing STP Part
Marketing – Brief discussion about STP.
Market Segmentation:
A market is divided into smaller segments based on distinct needs, characteristics or behaviors of the consumers. The divided markets most probably require separate products or marketing strategies. A market segment consists of consumers who respond in a similar way to a given set of marketing efforts.
For example: In the bed market, consumers who want biggest, most comfortable bed regardless of price make up a segment whereas consumers care mainly about price make up another segment.
The importance of market segmentation is to design a marketing strategy that precisely matches the expectations of consumers in the targeted segment. Next is to lessen risk in determining where, when, how, and to whom a product, service, or brand will be marketed. It is also an effective method to increase the marketing efficiency by directing effort specifically towards the targeted segment in a manner consistent with that segment's characteristics and features.
Market Targeting:
Market targeting is to select the segment to enter by evaluating the attractiveness. Target market consists of a set of buyers who share common needs or characteristics that the company decides to serve.
For example: Disney cruises target families with young children while single cruises target unmarried adults.
Company with limited sources will serve customer segments that major competitors overlook. Then, a company might also serve several related segments- perhaps those with different kinds of customers but with the same basic wants.
For example: Abercrombie & Fitch (A&F) is an American retailer who targets college students, teens, and kids with same quality of casual clothes and accessories.
Market Positioning:
It is an arrangement of a product to occupy a clear, distinctive, and desirable place to compete products in the minds of target consumers. It can also be defined as an action of linking uniqueness or strength to the brand.
For
Market Segmentation:
A market is divided into smaller segments based on distinct needs, characteristics or behaviors of the consumers. The divided markets most probably require separate products or marketing strategies. A market segment consists of consumers who respond in a similar way to a given set of marketing efforts.
For example: In the bed market, consumers who want biggest, most comfortable bed regardless of price make up a segment whereas consumers care mainly about price make up another segment.
The importance of market segmentation is to design a marketing strategy that precisely matches the expectations of consumers in the targeted segment. Next is to lessen risk in determining where, when, how, and to whom a product, service, or brand will be marketed. It is also an effective method to increase the marketing efficiency by directing effort specifically towards the targeted segment in a manner consistent with that segment's characteristics and features.
Market Targeting:
Market targeting is to select the segment to enter by evaluating the attractiveness. Target market consists of a set of buyers who share common needs or characteristics that the company decides to serve.
For example: Disney cruises target families with young children while single cruises target unmarried adults.
Company with limited sources will serve customer segments that major competitors overlook. Then, a company might also serve several related segments- perhaps those with different kinds of customers but with the same basic wants.
For example: Abercrombie & Fitch (A&F) is an American retailer who targets college students, teens, and kids with same quality of casual clothes and accessories.
Market Positioning:
It is an arrangement of a product to occupy a clear, distinctive, and desirable place to compete products in the minds of target consumers. It can also be defined as an action of linking uniqueness or strength to the brand.
For