Segmenting, Targeting, Positioning (STP) is the process which marketers employ to select target markets. Segmentation is the process of ordering consumers into groups with similar product interests or needs. Targeting involves a company determining which market segments it believes it can satisfy, and then choosing an appropriate targeting strategy for the segments. Positioning is how consumers perceive a brand or product, particularly in relation to other brands and products.
The relation between target segments and product positioning is dependent on the age of the company. For a new company, they have the opportunity to decide what perceptions that want the public to have about the company as they are yet to have a position. Therefore they can choose the target market, and then decide on brand positioning. For a company that has existed for some time, they already have a present brand position. Brand positioning often takes time to build, and much time to change. For this reason, established companies are likely to choose target markets that are ideal for its brand positioning.
Positioning is a crucial element for any company as this is how the general public views a brand or product. The public perception of the brand or product is likely to be a determining factor as to whether they buy it or not. Brand positioning is delivered to the market through a marketing mix, which consists of: product strategy, pricing strategy, promotion strategy, and distribution strategy. Positioning: A battle for your mind, demonstrates the effects of positioning on the consumer. Often, the leading company is the one who released the product first. Consumers easily remember the first company to produce a product over others who enter the market late. Xerox produced the first paper copying machine in the US in 1959, and still holds the leading market share for photo copying machines. Xerox was so well known that the word Xerox became a verb to replace photo copy. This...
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