Segmentation, Targeting & Positioning

University of Zimbabwe Graduate School of focus *Marketing Ma*nagement Question Kotler (1988) has tell that The heart of modern strategic merchandising posterior be described as s.t.p. separateing, rear ending and military bearing. Discuss this statement utilize appropriate examples. Introduction Market cleavage By definition mart emerge naval fraction is the division of a securities industry into diverse groups of customers with equal needs.Or to express it in a nonher way, market partition is the division of a mass market into classifiable and distinct groups or segments, and each has putting green characteristics and needs and displays similar response to selling actions. In essence it is the process of dividing a varied and differing group of buyers or dominance buyers into smaller groups, within which broadly similar patterns of buyers exist. (Wilson and Gilligan, 2007, p. 318). There atomic number 18 several ship nominateal in which companies buns se gment their markets. full as you can divide an o lean up into segments you can divide the state as a whole into distinct groups of people or segments that attain something in common. Marketers therefore look for variables they can substance ab uptake to divide up the population. According to Kotler (1997) the ordinarily used variables argon Geographic segmentation, demographic segmentation, psychographic segmentation and behavioural segmentation. Products can be aimed at a lifestyle. People be grouped according to the way they star their lives and the attitudes they shargon. For example, young professionals may drive a sports car because of the image they need to portray. conjoin p bents might want the same things, exclusively defend to provide for their children, which is a too large extra cost. They exit need a family car to suit their lifestyle. thusly you lead control a couple that has middling married and have no children, leave go for a Mazda 3, while sr. couples with three or so children provide go for a Mazda BT-50 because it is bigger and can accommodate the whole family. so far the range and variety of merchandise decisions suggest that some(prenominal) attempt to use a hotshot basis for segmentation may gist in in jog marketing decisions as closely as a expend of resources.Thus increasingly today you leave find marketing strategies combining deuce or overmuch basis for segmentation of their market. TARGETING Once the firm is satisfied that the segments warrants tutelage there ar various ways in which a firm can then target a market. The original is a ane crossroad offering. In other words, the marketer targets a single convergence offering at a single segment in a market with many segments. For example, British air ducts Concorde is a high treasure product aimed specifically at subscriber line people and tourists forgeting to pay more for speed.Identifying marketing targets enables organisations to find opp ortunities and tap into them. It hold backs firms the reading needed to focus on the buyers that are interested in what they have to offer. This saves some(prenominal) time and m matchlessy in an ever-changing partnership. However if you pursue one segment of your target market and the demand for your product decreases, so will your financial forte. In essence, you are putting all your eggs in one basket. When your firm becomes well established in a accompaniment market segment, it may be ticklish for you to move to another segment. This may fare due to your market reputation or popularity.For example, if Lorimark HR Consultants becomes k at one timen for helping college graduates find jobs, unemployed professionals may perceive them as only having the expertise to serve that market. some other downside of target marketing may that a large segment of the population may be left out in the cold. Though demographics and segmentation might give an overall view of the intended m arket, consumer expending habits change greatly, depending on trends and economic factors. With society taking on more of a unisex lifestyle businesses should be thorough when using for example gender to target market.An example of a product that was traditionally targeted at women and is now being targeted with variations in strategy at men is pilus colouring. Men now pay position attention to their hair in much the same way as woman. Thus target marketing should be through with extra care taking into study all factors that may have an matter on the organizations gainfulness and the perception or position it wants to constrain in the market. POSITIONING Thus localisation is all al close to perception and is inextricably linked to segmentation. It cannot be defined until the market has been divided into unique segments, and target segments have been selected.As perception differs from person to person, so do the results of the positioning map. Positioning reflects the plac e a product occupies in a market or segment. A prospered position has characteristics that are both differentiating and grand to consumers and the characteristic may or may not reflect reality. A position is effectively built by communicating a consistent message to consumers about the product and where it fits into the market in damage of the features, performance, quality, conformance, durability, reliability, style and design through advertising, place name, and packaging and all the other elements of marketing mix. Kotler, 1997, p. 301) For years OK Zimbabwe has constantly and consistently bombarded the minds of consumers with the message . where your money buys you more. Thereby creating in the mind of the consumer that OK has the trump prices and your dollar with OK can take you a long way. Another example will be that of Colgate and Surf by Unilever, these products are stuck in the minds of consumers (positioned), such that if someone is buying any other toothpaste or lavation powder, not necessarily Colgate or surf, they will still refer to the product as Colgate or surf respectively. It is the product in mind of the consumers.That is positioning. What is our current position? What does the position look like what are the most distinguished dimensions in the category? What are the other products in that space and where are they? What are the gaps, unfilled positions or holes in the category? Which dimensions are most important? How do these attitudes differ by market segment? What position do we want to have? Some of the positioning opportunities for a product include Finding an unmet consumer needs or at least one that is not being adequately met now by completion? Identifying product strength that is both unique and important.Determining how to correct a product weakness and thereby enhance a products appeal. For example Ponds new and improved. ever-changing consumer usage patterns to include different or additional uses for the product. Identifying market segments, which represent the best targets for a product. How do we create a new positioning? Physical product differences. Communications- finding a memorable and meaty way to describe the Positioning is not what you do to a product positioning is what you do to the mind of the prospect. (www. s-m-a-r-t. com/Exp_brandpros. ) Accessed 3 September 2009.Other questions that the marketer should write out with in terms of positioning are whom do I have to overcome to own the position, do I have the resources to do it, can I dominate until I get there and are my tactics supporting the positioning objectives I have set. The positioning map at a woefuler place will show how the motor manufacture positions their products in the market. Positioning map + luxuriously (price) From the above positioning map it can be concluded that products tend to thumping in the high price/ starting time prudence (fast) sector and also in the low price/high economy sector. There is an opportunity in the low price/low economy (fast) sector. peradventure Hyundai or Kia can consider introducing a low cost sport saloon. However it is all down to the perception of the market about the product. Conclusion Undertaking a Segmentation, Targeting and Positioning process is probably one of the most important processes management should harness both at the onset of a new offer creation as well as part of a periodic revision of the portfolio of offers and strategies used by organization. A market research is incessantly the starting point in the STP process otherwise the organizations resources will be misdirected. References Aaker A. David, (1995).Strategic Market Management, 4th Edition, washstand Wiley & Sons, Inc. Armstrong J. Scott, (2006). Strategic Marketing Management A Business Process Approach. Brand pros operational at http/www. s-m-a-r-t. com/Exp_brandpros. Accessed 3 September 2009. Grahame Dowling, (2004). Creating embodied Reputation. Identity, Image a nd performance. Oxford University Press Inc. Kotler P, (1997). Marketing Management, Analysis, Planning, execution of instrument and Control, 9TH Edition, Prentice Hall. Malcolm H. B. McDonald, (1996) Marketing Plans, How to prepare them how use them, 3rd Edition, Butterworth-Heinemann. Wilson and Gilligan