Task (3) About the Segmentation, targeting and Position process?
The Full Process of Segmentation, targeting and position.
Market segmentation, concentrated on and positioning are the three components of what is regularly known as the S-T-P strategy. Each step contributes to the development of a centered promotional plan. The procedure starts with brainstorming manageable consumer types and ends with the formulation of a method for advertising fee to those customers.
The STP method demonstrates the hyperlinks between an ordinary market and how a company chooses to compete in that market. It is every so often referred to as a process, with segmentation being performed first, then the resolution of one or more goal markets and then ultimately the implementation of positioning. The aim of the STP procedure is to information the agency to the improvement and implementation of an fantastic advertising mix, as highlighted in the following diagram.
3.1 Definitions of segmentation, targeting and positioning
Market segmentation can be defined as:
• The process of splitting a market into smaller businesses with comparable product needs or identifiable characteristics, for the cause of deciding on gorgeous target markets.
• Market Segmentation Variables are:
Geographic Market Segmentation, Demographic Market Segmentation,
Targeting (or target market selection) refers to:
• An organization’s proactive determination of a appropriate market segment (or segments) with the intention of heavily focusing the firm’s advertising provides and activities closer to this team of associated consumers.
In addition, positioning (which is sometimes referred to as product positioning) is:
• Positioning is the target market’s appreciation of the product’s key benefits and features, relative to the offerings of competitive products.
3.2 Segmentation, Targeting and Position models
Two alternate models help marketing study understand the STP process.
The introductory model simply uses the three letters of STP to highlight the core elements of the process, namely segmentation, targeting and positioning.
This approach is shown in the following diagram and discussed in the Basic STP Process section.
While this simple model is a correct beginning point for understanding the ordinary process, there are ranges of smaller steps that need to additionally be understood, which are outlined in the following diagram. By reviewing this more unique approach, college students will attain a a good deal higher appreciation of this important advertising concept.
3.3 Market segmentation example for sports shoes
In this example of market segmentation for sport shoes, five consumer segments have been identified, namely:
• Elite sports,
• Everyday wearers,
• Fashion sports, and
• Budget conscious consumers.
These five example market segments are shown in the following diagram:
THE SPORTY MARKET SEGMENT
This is the traditional phase of the sports shoe market. These customers are actively concerned in health or sports on a normal basis. They are normally looking for a right best sports activities shoe that has the performance required to assist them in their chosen discipline of activity. Many of these buyers would go to the gymnasium or some structure of health category on a normal basis or participate in some form of prepared sport.
They are most interested in frequent manufacturers that offer greater first-rate shoes. They are willing to pay a higher fee (within reason) for a appropriate product.
THE ELITE SPORTS MARKET SEGMENT
Consumers in this unique market section are extraordinarily committed to a specific sport, and probable train extra than 10 hours per week. Some may also be professional athletes, but the majority are serious competitors in their chosen sport.
They are particularly worried in sneakers that are designed for a specific characteristic (such as running, cycling, basketball, and so on) and typically are looking out for out more improvements that are current and technologically advanced products. This will be an excessive involvement buy decision for these consumers and will have a tendency to be exceptionally brand loyal as a result.
THE FASHION SPORTS MARKET SEGMENT
This rising phase is searching for sporty looking fashion shoe.
They do NOT buy the product for its sports activities function, however for its style, seem and company photo (for their social/self-identity). As this market tends to be teenagers, young adults and young professionals, they favor brands that are special to themselves, no longer brands that their parents wear.
THE BUDGET CONSCIOUS MARKET SEGMENT
Like any market, there are a percentage of people who are very budget conscious, or will buy more cost-effective shoes on occasions. These customers are after low quality, low priced shoes that have a carrying appear about them.
Consumers in this market have a tendency to be families, retirees, or shoppers looking for a greater pair of shoes truly to wear around the house or in the garden.
Example of How to Select a Target Market
Using the list of evaluation/assessment points, let’s evaluate how a firm would evaluate three exceptional market segments. For this example, we will use a manufacturer of sports activities footwear who has identified four market segments, as per the following segmentation tree diagram.
Examples of Positioning by Category
Tagline/Slogan Brand How is it positioned?
Snap, Crackle, Pop Rice Krispies
(or Rice Bubbles) By product attribute
Simply highlighting the attribute of noise that this cereal makes, which adds a fun benefit to the product
Finger lickin’ good KFC
By product attribute
Focuses on the enjoyable taste of the product
No battery is stronger longer Duracell Batteries By product class and by product attribute
Indicates that the battery is the leading product in its product class for durability
The un-cola 7-up
Against competition and by user
Suggests a clear alternative to cola drinks and was designed to appeal to certain attitudes held among the target market
Everything is easier on a Mac Apple Computer
Is targeting IBM style computers, highlighting that the Mac is much simpler and easier to use
Example of an inconsistent marketing mix
The following format illustrates the transport of an inconsistent marketing mix. In this case, using a jogging sports activities shoe, the goal is to role the product as a shoe ‘for serious runners’. The firm has invested in a marketing campaign in specialist walking magazines and websites. While that section of their software is good, alas the balance of their advertising combine presenting is not aligned to that positioning.
As shown, the product high quality is poor as the company has used low pleasant substances and they have now not invested in a suitable design. They have used bargain stores as their high distribution channel and they have priced shoes at a bargain level as well. These marketing mix factors absolutely speak to the quit consumer that this is a low quality, price range shoe, and now not a serious jogging shoe as the advertising tries to indicate.
Because of this inconsistency of the advertising and marketing mix, which is not supportive of the universal positioning goals, the following outcomes would be expected:
• Overall sales would be pretty negative as the product does not appeal to it any precise goal market
• Consumers who do buy the product would possibly be very disenchanted and would be very not likely to rebuy the footwear
• The outlets themselves would possibly be disappointed with the client feedback and may discontinue stocking this precise product
• Negative word-of-mouth is likely
• Negative media and Internet reviews are also likely, further brand equity
The problem is without difficulty rectified with the aid of truly aligning the marketing combine to a steady end. If the association does choose to function the shoe for serious runners, then they want to invest in product improvement with higher excellent materials, they would need to get right of entry to carrying and forte shoe stores, and the product is to be priced higher.
Alternatively, they should alternate their communications mix and role the shoe as a price range jogging shoe. Approach either would align the positioning with the marketing mix elements or will generate better sales and superior profitability. (segmentationstudyguide, 2017)