Preview

ashok

Powerful Essays
Open Document
Open Document
1569 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
ashok
Marketing Management
HI 5004S

Submitted by:
BIKESH DANGOL
GUE 2313

Submitted to:
Jas Paul Chawla

Date of submission
2-05-2014

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
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



References: www.conceptsofmarketingmanagement.blogspot.com.au/p/segmentation-targeting-and-positioning.html viewed on 21/04/2014 www.du.se/pagefiles/5054/smolyaninova.pdf viewed on 21/04/2014 www.smartinsights.com/digital-marketing-strategy/customer-segmentation-targeting/segmentation-targeting-positioning-model/ viewed on 21/04/2014 www.evancarmichael.com/Marketing/5604/Target-Market-Segmentation-and-Positioning.html viewed on 24/04/2014 www.ddegjust.ac.in/studymaterial/pgdapr/pgdapr-105.pdf viewed on 24/04/2014 www.ukessays.co.uk/essays/marketing/stp-process.php viewed on 24/04/2014 www.uwmktg301.blogspot.com.au/2010/01/stp-process.html viewed on 25/04/2014 www.uwmktg301.blogspot.com/2010/01/air-jordan.html viewed on 25/04/2014

You May Also Find These Documents Helpful

  • Better Essays

    “Market segmentation is a two-step process of (1) naming broad product-markets and (2) segmenting these broad product-markets in order to select target markets and develop suitable marketing mixes” (Perreault, Cannon, & McCarthy, 2011, p. 92). To complete successful market segmentation an organization must gather information on potential customers, divide the population into various market segments, estimate the most profitable segments, and rank the market segments by potential sales. This process is imperative during the marketing process because it distinguishes…

    • 1524 Words
    • 7 Pages
    Better Essays
  • Powerful Essays

    MARKET SEGMENTATION

    • 4820 Words
    • 14 Pages

    Market segmentation provides businesses with the possibility of customizing a unique set of elements known as the 4P’s (product, price, place, and promotion) for specific target markets. Therefore, it allows them to satisfy their customers’ needs in a more effective way, through a value proposition that is potentially superior to that of any other competitor. Market segmentation refers then to the process of defining and breaking down a wide market into clearly identifiable and homogeneous groups of consumers with similar characteristics, wants, and needs.…

    • 4820 Words
    • 14 Pages
    Powerful Essays
  • Better Essays

    Morrisons vs Tesco

    • 1261 Words
    • 6 Pages

    Segmentation is the process of breaking down the total market for a product or service into distinct groups. The essence of the marketing concept when taking decisions is to place customer needs at the centre of the organisation. This approach stems from a number of different factors, such as competition increasing; customers well educated; patterns of demands which is relatively changing and many others. For example when the banking system was developed, Banks were mostly known to put the customers’ excess money into a safe place while earning some interest on the capital and to borrow money in order to finance personal requirements. Nowadays, customers are looking for much…

    • 1261 Words
    • 6 Pages
    Better Essays
  • Best Essays

    Organizational Presence

    • 1186 Words
    • 5 Pages

    Market segmentation is the process of grouping a market into smaller subgroups (Market segment, 2010). Advancements in technology offer customers options when it comes to shopping and getting the things they want and need. No industry has been completely untouched by technology. Companies are being forced to broaden their considerations when they begin to reach out to the different segments they target. It’s not only the younger generation who is utilizing new technology to transact daily business affairs. A…

    • 1186 Words
    • 5 Pages
    Best Essays
  • Powerful Essays

    Segmentation consists in dividing a population into homogeneous groups of people; these groups must be as different as possible. A business segments to better meet customer’s expectations, to exploit new market opportunities and to concentrate its forces and place of battle. Segmenting customers is to cut it into homogeneous groups, based on specific criteria, each group being distinct from each other and can be chosen as the target of a marketing action. There are many possible criteria for segmentation, which can be grouped into broad categories:…

    • 1931 Words
    • 8 Pages
    Powerful Essays
  • Powerful Essays

    Roy Rogers

    • 864 Words
    • 4 Pages

    • Segmentation: the subdividing of a market into homogenous subsets of customers, where any subset can be selected as a market target to be reached with a distinctive marketing mix…

    • 864 Words
    • 4 Pages
    Powerful Essays
  • Powerful Essays

    Market Segmentation -Hmv

    • 1861 Words
    • 8 Pages

    Market segmentation is the fundamental component of a market-based strategy. A market segment is a specific group of customers with distinctive customer needs, purchase behaviours and different descriptive characteristics. (Best, 2000) By categorizing markets into sub sectors, targeting marketing effort in such a way as to meet the technical and other requirements of each of these, organisations maybe able to secure greater competitive position than if they attempted to satisfy the general requirements of the market as a whole.…

    • 1861 Words
    • 8 Pages
    Powerful Essays
  • Good Essays

    Companies need to segment their market for different reasons. Before one market 's products or services, one needs to understand their customers, and find ways and means to satisfy their wants. This is imperative to stay ahead of the competition and build the brand. This is done through extensive market research. Although it is not possible to satisfy individual needs and even to understand all of them, a clearly defined market segmentation strategy will help create a market to cater to groups of individuals that will make economic sense to mass produce and distribute. The concept of target market segmentation strategy also falls under the blanket of market segmentation, except the former recognizes and understands the diversity of customers and provides them with products and services that suit their specific requirements (McDaniels & Kolari, 2008). A successful market strategy strives to understand different segments and its different needs; works on the exhibited common wants and responds immediately.…

    • 850 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    Market Segmentation

    • 1841 Words
    • 8 Pages

    This paper looks at the use of market segmentation as a tool for improving customer satisfaction in insurance service delivery. Insurance companies are always seeking alternative ways to improve the level of satisfaction among their customers; market segmentation may be a useful tool. The paper argues that in spite of the egalitarian approach that underpins the marketing of insurance, market segmentation may be used to better serve the needs of their customers. In utilizing market segmentation, the insurance companies must pay particular attention to barriers that may negatively impact the effectiveness of the market segmentation exercise.…

    • 1841 Words
    • 8 Pages
    Powerful Essays
  • Good Essays

    Market segmentation refers to the process of dividing a market into a smaller group of buyers with distinct needs, characteristics, or behaviors that might require separate marketing strategies or mixes. The marketers of Haagen-Dazs in Malaysia have tried different market segmentation variables to find out the best method to market structure. The characteristics that used are geographic and demographic.…

    • 726 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Bsh White Goods Industry

    • 2060 Words
    • 9 Pages

    The home appliances sector showed a strong recovery in 2010. Driven by increasing consumer confidence and the recovery of real estate construction, the market for large domestic appliances grew by 8% bringing the market to a total of 5.4 million appliances.…

    • 2060 Words
    • 9 Pages
    Powerful Essays
  • Good Essays

    Segmentation

    • 1579 Words
    • 7 Pages

    Market segmentation is the process by which a diverse market is divided into a number of distinct sub-markets (Walker and Mullins). The objective is to identify groups of customers with similar needs and characteristics so that they can be served effectively (Jobber, 2007). By grouping together with similar needs, market segmentation provides a commercially viable method of serving these customers which enables consumer needs to be more closely matched. Consequently, firms and organizations can improve their marketing effort by developing specific products or services for particular segments.…

    • 1579 Words
    • 7 Pages
    Good Essays
  • Powerful Essays

    Titan Watches

    • 3584 Words
    • 15 Pages

    Dividing the market by grouping the customer with similar tastes and preferences into one segment is called is called “segmentation”. Segmentation help marketers understand the needs of different customers better and serve them with better value propositions. A market comprises of different consumers possessing innumerable tastes and preferences. Depending on their marketing approach and the nature of the products marketers can adopt different level s of segmentation. The levels of market segmentation are: • Segment Marketing • Individual Marketing • Niche Marketing • Local Marketing…

    • 3584 Words
    • 15 Pages
    Powerful Essays
  • Best Essays

    Marketing Principles

    • 3599 Words
    • 15 Pages

    Segmentation involves dividing the market into groups, where individuals have similar needs and wants for services and products. It could also be a segmentation of people on the basis of behavior, culture and economic status. (Rajeev, 2012)…

    • 3599 Words
    • 15 Pages
    Best Essays
  • Good Essays

    Marketing Principle

    • 5355 Words
    • 20 Pages

    Marketing is the science of choosing target markets through market analysis and market segmentation, as well as understanding consumer behavior and providing superior customer value. Today, Segmentation, Targeting and Positioning (STP) is a familiar strategic approach in Modern Marketing. It is one of the most commonly applied marketing models in practice. The STP model is useful when creating marketing communications plans since it helps marketers to priorities propositions and then develop and deliver personalized and relevant messages to engage with different audiences.…

    • 5355 Words
    • 20 Pages
    Good Essays

Related Topics