Stp Market Segmentation
MARKET SEGMENTATION, TARGETING AND POSITIONING MARKET SEGMENTATION
When it comes to marketing strategies, most people spontaneously think about the 4P (Product, Price, Place, Promotion) – maybe extended by three more Ps for marketing services (People, Processes, Physical Evidence).
Market segmentation and the identification of target markets, however, are an important element of each marketing strategy. They are the basis for determining any particular marketing mix. Basic steps in marketing strategy are as follows:-
* ATTRIBUTES OF EFFECTIVE SEGMENTATION
Market segmentation is resorted to for achieving certain practical purpose. For example, it has to be useful in developing and implementing effective and practical marketing programmes. For this to happen, the segments arrived at must meet certain criteria such:- a. Identifiable: The differentiating attributes of the segments must be measurable so that they can be identified. b. Accessible: The segments must be reachable through communication and distribution channels. c. Sizeable: The segments should be sufficiently large to justify the resources required to target them. A very small segment may not serve commercial exploitation. d. Profitable: - There is no use in locating segments that are sizeable but not profitable. e. Unique needs: To justify separate offerings, the segments must respond differently to the different marketing mixes. f. Durable: The segments should be relatively stable to minimize the cost of frequent changes. g. Measurable: The potential of the segments as well as the effect of a specific marketing mix on them should be measurable. h. Compatible: - Segments must be compatible with firm’s resources and capabilities.
* REASONS FOR MARKET SEGMENTATION
Segmentation is the basis for developing targeted and effective marketing plans. Furthermore, analysis of market segments
When it comes to marketing strategies, most people spontaneously think about the 4P (Product, Price, Place, Promotion) – maybe extended by three more Ps for marketing services (People, Processes, Physical Evidence).
Market segmentation and the identification of target markets, however, are an important element of each marketing strategy. They are the basis for determining any particular marketing mix. Basic steps in marketing strategy are as follows:-
* ATTRIBUTES OF EFFECTIVE SEGMENTATION
Market segmentation is resorted to for achieving certain practical purpose. For example, it has to be useful in developing and implementing effective and practical marketing programmes. For this to happen, the segments arrived at must meet certain criteria such:- a. Identifiable: The differentiating attributes of the segments must be measurable so that they can be identified. b. Accessible: The segments must be reachable through communication and distribution channels. c. Sizeable: The segments should be sufficiently large to justify the resources required to target them. A very small segment may not serve commercial exploitation. d. Profitable: - There is no use in locating segments that are sizeable but not profitable. e. Unique needs: To justify separate offerings, the segments must respond differently to the different marketing mixes. f. Durable: The segments should be relatively stable to minimize the cost of frequent changes. g. Measurable: The potential of the segments as well as the effect of a specific marketing mix on them should be measurable. h. Compatible: - Segments must be compatible with firm’s resources and capabilities.
* REASONS FOR MARKET SEGMENTATION
Segmentation is the basis for developing targeted and effective marketing plans. Furthermore, analysis of market segments