History and Relevancy of marketing Concept of STP (Strategy, Targeting and Positioning)

Segmentation, targeting, and positioning together comprise a three stage process.  We first (1) determine which kinds of customers exist, then (2) select which ones we are best off trying to serve and, finally, (3) implement our segmentation by optimizing our products/services for that segment and communicating that we have made the choice to distinguish ourselves that way.

•         Market segmentation: dividing market into distinct groups with distinct needs, characteristics, or behaviours, who might require separate products or marketing mixes

•         Target marketing: choosing which group(s) to appeal to

•         Market positioning: creating a clear, distinctive, and desirable position in the target consumer’s mind, relative to competition

STP—Segmentation, Targeting, Positioning: The Heart of Modern Strategy in Marketing

·                     How segmentation embodies the marketing concept

·                     Fundamental marketing principles and their relationships to segmentation: product positioning, distribution, communication, pricing, salesforce strategy

Customer Value Measurements

·                     How to conceptualize and quantify both functional value (product performance) and supplier/service value in the business marketplace

·                     Why and how to use customer value assessment as the basis for business market segmentation

Segmentation Research

·                     Alternative approaches: qualitative and quantitative

·                     Measurement techniques and their use

·                     Selection of organizations and respondents

·                     Using in-company data

·                     Interpreting and using results

STP Tools and Analysis for

·                     Segmenting markets based on customer needs

·                     Targeting the most attractive set of customers or markets

·                     Positioning offerings in crowded markets with perceptual maps

The Process Data Model

Positioning

Positioning involves implementing our targeting.  For example, Apple Computer has chosen to position itself as a maker of user-friendly computers.  Thus, Apple has done a lot through its advertising to promote itself, through its unintimidating icons, as a computer for “non-geeks.”  The Visual C software programming language, in contrast, is aimed a “techies.”

Gunter and Furnham (1992) prescribe that after selecting target markets the

strategist should develop positioning objectives to then develop them into a detailed

marketing mix. However, Aaker (1996) recommends developing the positioning

objective only after the brand identity and value proposition have been developed. In

exploring the latter, it is useful to understand Aaker's definition of positioning is "the part

of the brand identity and value proposition that is to be actively communicated to the

target audience and that demonstrates an advantage over competing brands." Kotler

(1994) refers to it as the unique selling proposition. Explained in other words, the

positioning statement is the point where the bundle of attributes join to form one concept

which aims at capturing the essence of that which the target audience seeks in the product

category. 

Positioning is the use of marketing to enable people to form a mental image

of your product in their minds (relative to other products).

Positioning involves implementing our targeting.  For example, Apple Computer has chosen to position itself as a maker of user-friendly computers.  Thus, Apple has done a lot through its advertising to promote itself, through its unintimidating icons, as a computer for “non-geeks.”  The Visual C software programming language, in contrast, is aimed a “techies.”

POSITIONING CONCEPTS:-

 Generally, there are three types of positioning concepts:

•Functional positions

Solve problems.
Provide benefits to customers.
Get favorable perception by investors (stock profile) and lenders.

•Symbolic positions

Self-image enhancement.
Ego identification.
Belongingness and social meaningfulness.
Affective fulfillment.

•Experiential positions

Provide sensory stimulation.

Provide cognitive stimulation.

•APPROACHES OF POSITIONING :-

The main positioning strategy is to either developing or reinforcing a particular
image for the brand in the mind of the customer. The main approaches to
positioning strategy are:-

•Customer benefits approach.

•The price-quality approach.

•The use or application approach.

•The product user approach.

•The product class approach.

•The cultural symbol approach.

•The competitor approach.

Target Market

After segmenting the market companies target the audience to be clearer in how to deal with the marketing problem and solution.

Targeting is the actual selection of the segment you want to serve the target market is the group of people or organizations whose needs a product is specifically designed to satisfy.

Target Marketing involves breaking a market into segments and then concentrating your marketing efforts on one or a few key segments. Target marketing can be the key to a small business’s success.

In target marketing, the first step is to do the research that will help you define and zero in on your target market. How to Find and Sell to Your Target Market will help you get started.

A principal concept in target marketing is that those who are targeted show a strong affinity or brand loyalty to that particular brand. Target Marketing allows the marketer / sales team to customize their message to the targeted group of consumers in a more focused manner.

Strategies for targeting the audience

Marketers have outlined four basic strategies to satisfy target markets: undifferentiated marketing or mass marketing, differentiated marketing, concentrated marketing, and micromarketing/ niche marketing.

Mass marketing is a market coverage strategy in which a firm decides to ignore market segment differences and go after the whole market with one offer. It is type of marketing (or attempting to sell through persuasion) of a product to a wide audience. The idea is to broadcast a message that will reach the largest number of people possible. Traditionally mass marketing has focused on radio, television and newspapers as the medium used to reach this broad audience.

For sales teams, one way to reach out to target markets is through direct marketing. This is done by buying consumer database based on the segmentation profiles you have defined. These database usually comes with consumer contacts (e.g. email, mobile no., home no., etc.). Caution is recommended when undertaking direct marketing efforts — check the targeted country's direct marketing laws.