Segementation, Marketing
Segmentation, targeting and positioning
The STP Process is a method by which markets are sub-divided into different segment
Successful, three activities which include segmentation, targeting and positioning, all need to take place in a sequence.
The STP Process is used more frequently within organisations due to customers’ needs being so diverse, the ability to reach specific segments and the increasing commonness of developed markets.
The first activity which is market segmentation: enables the organisation to identify a similar group of customers
The second activity is the target market: the organisation identifies a group of customers to aim their product for
Third activity is product positioning: organisation creates an idea that will appeal to the target market that they have chosen.
Benefits:
-enables a company to enhance their competitive position; it provides direction to a company and -allows a company to focus on marketing strategies.
-allows a company to identify market growth opportunities; this is done through the finding potential new customers and growth segments.
Market segments are formed when a market is divided into a number of groups where each member of the group has similar characteristics and similar needs of a product or service.
-ensure that a company can meet a specific target market needs.
approach includes an organisation finding a new segment and identifying what their needs are, when looking to create a new product or service they must take into account promotion, place and price, only then they can offer their new product or service to their targeted market segment.
Segmented by two approaches:
Breakdown Method:
-similar customers within the market but the organisation has to identify the groups that have similar differences
Build-up Method
-market has different customers
-organisation needs to find similarities within the customers
Segment consumer markets - organisation must use market
The STP Process is a method by which markets are sub-divided into different segment
Successful, three activities which include segmentation, targeting and positioning, all need to take place in a sequence.
The STP Process is used more frequently within organisations due to customers’ needs being so diverse, the ability to reach specific segments and the increasing commonness of developed markets.
The first activity which is market segmentation: enables the organisation to identify a similar group of customers
The second activity is the target market: the organisation identifies a group of customers to aim their product for
Third activity is product positioning: organisation creates an idea that will appeal to the target market that they have chosen.
Benefits:
-enables a company to enhance their competitive position; it provides direction to a company and -allows a company to focus on marketing strategies.
-allows a company to identify market growth opportunities; this is done through the finding potential new customers and growth segments.
Market segments are formed when a market is divided into a number of groups where each member of the group has similar characteristics and similar needs of a product or service.
-ensure that a company can meet a specific target market needs.
approach includes an organisation finding a new segment and identifying what their needs are, when looking to create a new product or service they must take into account promotion, place and price, only then they can offer their new product or service to their targeted market segment.
Segmented by two approaches:
Breakdown Method:
-similar customers within the market but the organisation has to identify the groups that have similar differences
Build-up Method
-market has different customers
-organisation needs to find similarities within the customers
Segment consumer markets - organisation must use market