Jas Paul Chawla
Date of submission
Segmentation, Targeting and Positioning (STP) is a marketing tool with the help of which marketers differentiate, attract, retain and customer grow base for their respective products. Today, STP is a popular strategic approach in modern marketing. In practice, marketing models is commonly applied. When creating marketing communication plans, STP model is useful. From high level STP is the goal of a marketing strategy which identify a target market and develop a marketing mix that will appeal to those potential customers. Regarding decision, the ideal mix marketing can be organized in terms of price, promotion and product. However, the goal is not to just come up with a particular strategy, but rather to focus on providing value to your key market segments. It analyse the sizes of market segment and develop customer profiles based on Demographic, Psychographic, and Environmental criterion.
Segmentation is the procedure that an organization goes through to segregate the market into several groups according to the various characteristics which might need different products. Market segmentation is also defined as “the process of taking the total heterogeneous market for a product and dividing it into various sub-markets or segments, each of which tends to be homogeneous in all significance. The markets could be segmented in various ways. For example, instead of mentioning a single market for ‘shoes’, it may be segmented into several sub-markets, e.g. shoes for executives, medical college students etc. Geographical segmentation on the similar lines is also possible for certain products” The main purpose of market segmentation is to measure the changing behaviour patterns of consumers. It should also be remembered that variation in consumer behaviour are both numerous and complex.
Targeting determined the attractiveness of each segment of its buying power, size, growth of the market, and competitiveness etc. Target marketing makes the promotion pricing and distribution of the product or services in a particular segment. Target market is consists of a position of buyers who share regular needs or characteristics that the company decides to provide. Generally, it is defined by age, gender, geography, socio-economic grouping, or any other combination of demographics. It means to select one target market and it concern to all marketing activities. Target market is not synonymous to segmentation. Segmentation is just the first step of the target market and it follows different basis of segmentation. Each segment is view as a distinct marketing opportunity. It evaluates continuously the worth of each segment whether the segment is distinguishable, measureable, sizeable, accessible, growing, profitable, compatible with the firm’s has the different advantage and distinctive capability for serving the selected segments. At the end, selecting those segments which are most suitable for the company
After evaluating different segments, the company can consider five patterns of target market selection. Such as; 1. Single segment concentration
2. Selective specialization
3. Product specialization
4. Market specialization
5. Full market coverage
Positioning means the process by which marketers try to create an image or identity or value in the minds of their target market for its product, brand, or organisation. It involves on affecting the targeting. For example Apple computer which has chosen itself as user-friendly computers. The place the product occupies in consumer’s minds relative to competing products. Suppose a company has researched and selected its target market. If it is the only company serving the target market, it will have no problem in selling the product at a price that will...
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