Positioning and segmentation are distinct parts of the [marketing] strategy and provide us with some extremely powerful tools;but ultimately they are linked by the central issue of focusing on satisfying customer’s needs in ways that are superior to competitors” (Hooley et al, 2012p183) .
Hooley et al (2012) Marketing Strategy & Competitive Positioning. 5thed. Harlow Pearson.
Indicate how any company could apply the concepts around STP, making generic recommendations.You are required to produce an essaythat demonstrates your understanding of this key aspect of strategic marketing.
- a sound theoretical and conceptual perspective, containing evidence of critical debate
- sound examination of STP and its application in industry showing an effective practical foundation,
- generic management recommendations.
Gabrielle by Chanel
The report helps in analysing the different theoretical and conceptual perspective of the segmentation, targeting and positioning of the different products which are being supplied by different organizations. With the help of the respective organization, this will help in analysing the critical kind of literature related to the same in an effective manner. The sound examination of the STP has to be done along with the application of the same in the industry as this helps in showing effective practical foundation of the same. Lastly, the generic strategic recommendations are required to be done which will help in managing the differences in an appropriate manner.
Gabrielle by Chanel is the French private organization which was founded in the year 1909. The headquarter of the company is situated at Paris, France and the areas served by the company is the entire worldwide. Furthermore, the number of employees working in the organization includes 1270 till the year 2010 (Vault, 2018).
Coca-Cola is the American Corporation along with manufacturer and retailer of non-alcoholic beverage concentrates along with syrups. It was founded in the year 1982 and these falls under the food and beverage industry. The number of employees working in the organization are 61800 (Company et al., 2018).
iPhone is a line of the different smartphones which are marketed and designed by Apple Inc and this uses the iOS mobile operating software. The release date of iPhone was in the year June 29 in the year 2007 and the number of employees working in the iPhone company are more than 90,000 (Apple 2018).
Kellogg’s Company has been found in the year 1906 and it is the American multinational manufacturing of food company which is headquartered in United States. The number of employees working at Kellogg’s is 33577 and there are different brands and products under the same as well (Kelloggs.com, 2018).
Emirates is the airline which is based in Dubai, UAE and this is wholly owned under the government of Dubai. The company was founded in the year 25th March and the number of employees working in Emirates include more than 64523 (Emirates.com, 2018).
Segmentation is defined as the first step which is defined as the process in the marketing that helps in entailing the division of the different customers in the market into different groups with unique characteristics. Furthermore, segmentation will help in splitting the market into various small groups who has the similar product needs or the characteristics which are identifiable in nature as well (Andaleeb 2016).
Targeting is defined as the in which this helps in selecting the market segments which will be the main focus of the marketing programs of the different customers. The entire process of segmentation will help in resulting in identification of the numerous target markets which is required to be analysed in an effective manner (Yeh, Jewell and Thomas 2017). The proactive reaction of the company in selecting the suitable market with the actual intention of focusing mainly on the marketing offers of the firm is essential in targeting.
Positioning is defined as the process in which the target market’s entire perception of the products benefits along with the different features are being analysed in an effective manner. The positioning is the main process of tailoring the offer as this will help in standing out from the different competitors (Schlegelmilch 2016).
There are different models of segmentation, targeting and positioning which is required to be analysed by the companies in an effective manner. The proper development of the segmentation along with targeting the customers in an effective manner. The introductory model of the STP will help in highlighting the core competencies of the process such as namely segmentation, targeting and positioning which will help in managing the product in an effective manner and appropriate manner that will further assist the companies in gaining competitive advantage (Venter, Wright and Dibb 2015).
The model of segmentation, targeting and positioning has become quite popular in the modern marketing environment. This is a strategic approach that is implemented by the modern organizations. The previous approach of organizations was more focussed towards the products that they intend to offer instead of the customers. However, in the modern business environment the focus of organizations has totally been towards the customers. The STP based model is used for the purpose of creating the marketing level communications as this is helpful for the marketers so that they are able to prioritise the propositions and then develop the personalised messages according to the choice of the customers (Barton 2015). This model is totally focussed on the customers or the target audience rather than the products that are offered by the organization. The model also focusses on the commercial effectiveness and the selection of some of most valuable areas for the business and further the successful development of the marketing mix of the organization (Bickhoff, Hollensen and Opresnik 2014).
As discussed by, Chaney, Touzani and Ben Slimane (2017), the segmentation process is helpful for the identification of niches which have specific needs and the mature markets where the organization can find new customers. The needs of the segments that are divided by the organization are similar in nature. This helps the organization to decide the products and services that it wishes to offer the customers belonging to each segment. The major ways by which the organizations try to segment the customers are based on the factors which are discussed further. The demographics of the people which is based on their age, income, gender, ethnicity, marital status, household and education are helpful in deciding the customer segments.
The psychographics of the customers is another major part of the segmentation process which is based on the emotions and personality of the customers. The values and beliefs of the different groups of customers can also affect the ways by which they behave towards a particular product or service. The life stages of customers are also based on the ways by which they segmented into different groups. The areas or regions where the customers belong are also based on the ways by which they are divided. The nature of purchase of the customers, their levels of usage and brand loyalty is helpful in the division of segments or target markets (Choi and Kim 2015).
As argued by, Cruceru and Moise (2017), the targeting process is based on the segments that have been divided by the marketers in the first step itself. The different factors that are able to affect the market targeting process include, the criteria size which needs to be large so that the segmentation can be justified. The differences need to exist between different segments which are noticeable as well. The profits that are anticipated is also an important part of the marketing plans that have been made. The accessibility of each segment is important for receiving the different marketing messages. The different segments need to be totally focussed on the different benefits that are provided by the organizations or the products.
Product positioning is the last and important element of the STP process. Two variables are mainly required for the purpose of illustrating the overview of the market. Positioning helps in the creation of perception of the products in the minds of the target audience. The positioning of the product is important for the creation of the brand or the image of the products that are to be offered by the organizations. The perceptions and the positions of the competition of the organizations are also important factors that are a part of the positioning process. The repositioning process is thereby a part of the changes that the organization wishes to bring in the perceptions of the consumers (French 2017).
The STP model is thereby based on the ways by which the target market of the organization is segmented in the modern business environment. The perceptions that are created by the organizations in the minds of the consumers is also an important part of the STP model. The model is thereby most useful for deciding the ways by which the customer focussed organizations are able to create a perfect customer base for the products that they wish to offer. The organization that has been considered an example of the application of the STP model is Apple Inc. The product that has been considered for explaining the STP application in an effective manner is the Apple iPhone (Gambetti and Schultz 2015).
Apple has always given utmost importance to the issues related to market segmentation and analysis. The organization operates in a highly competitive technology industry which requires thorough study of the environment and the customers so that appropriate services can be provided to them. The company builds the products and services with respect to the experience and desires of the customers. The two major types of market segmentation techniques that have been used by Apple for the purpose of selecting the appropriate customers are, psychographic segmentation and behavioural segmentation (Gengler and Mulvey 2017).
Segmentation has played an important role for the operations of Chanel in the industry. The lifestyle of the customers plays an important role in taking the decision related to the products and services that will be purchased by them. The interests and the activities of customers are important factors that help in deciding the ways by which the services and products can be designed. The demographic factors of the environment are also considered by Chanel to develop the products based on the age and occupation of the customers. The different range of products of the organization are therefore targeted towards customers belonging to various age groups (Kamal 2016).
The geographical areas are taken into consideration by Coca Cola for attracting customers towards the organization. The organization has been successful in establishing its brand name all over the world in an effective manner. The products of Coca Cola company are also purchased by the customers easily with the help of various retail stores. The growth strategy that has been recently implemented by Coca Cola in the market is capable of providing a competitive position (Kubacki, Dietrich and Rundle-Thiele 2017). This involves increase of the distribution of the products to more and more retail stores all over the world. The organization is thereby able to reach huge number of customers and further expand the market in an effective manner. The behaviour of the customers towards the products that are offered by Coca Cola company is also an important factor that influences the profitability of the organization (Lopatovska 2015).
The knowledge related to different products that are offered to the customers by Kelloggs is an important factor that affects the revenues of the company. The different type of market segment that is targeted by the organization is an important part of the segmentation process. The company is able to innovate its products on a continuous basis with the help of innovative ideas which can attract more customers. The response rate that is received by the company from the market and the customers has been found to be quite high. The customers are thereby looking for more and more innovative products that are based on new designs (Makgosa and Sangodoyin 2018).
The company has also integrated the different services with respect to the lifestyle of the customers. The services that are provided by Emirates are mainly based on the needs of the high profile customers who expect high quality services and not worried about the ways by which they are charged for the same. The segmentation of the market that is done by Emirates has thereby been helpful for the success of the operations of the organization in the airlines industry. The marketing strategies that have been developed by Emirates have been based on the segmentation based strategies (Milichovsky and Simberova 2015).
Apple has proved to become a unique organization which does not target its products towards an existing segment of the market. The company mainly creates and further expands the consumer market in an effective manner. The target market of the organization is not based on a specific set of customers. The consumers of Apple Inc. are considered to be unique in nature and they also love innovative solutions that are provided by the products and services of the company. Apple has always been well known in the market for the development of an effective brand name.
The organization has always offered unique services to the customers in the industry (Nair and Ndubisi 2015). The marketing strategy that has been designed by Emirates is also quite unique in nature. The well-defined target market of the organization consists of unique types of users who belong to a specific type of segment. The unique users who belong to the target group of Emirates are loyal to the organization and the products that it offers.
The Coca Cola company has realized that it can maximize the profits with the help of unique and innovative ways. This strategy has made Coca Cola successful in the industry with the help of its different products. Coca Cola has always conducted thorough research on different types of customers within the target market so that the appropriate products can be offered to them (Schlegelmilch 2016).
The products that are brought by Chanel in the market are filled with unique attributes that are able to attract the customers. The revenues of Chanel have increased with the help of sustainability based efforts that have been undertaken by the organization for its target market. The high quality and premium products of Chanel are targeted towards the high income groups (Serrat 2017).
The positioning strategy of Apple Inc. has been implemented with respect to the core competencies that have been created by the company. The distinct features that are provided by the products of Apple have been able to affect the position of the organization in the industry. The products that have been launched by the organization on a periodic basis are a major part of the position that has been created in the market. The company has worked quite hard for the purpose of creating the position that it holds between the other technology based organizations (Tanner and Raymond 2015). The creativity of Apple has been the most sought after quality of the company in the technology industry. The different creative features that are related to the branding strategy of Apple include the designs of the products and the interface that has been designed as well. The Apple stores all over the world have also been a major part of the brand position of the organization in the entire world (Venter, Wright and Dibb 2015). The interior design of the stores and the levels of creative service have been able to provide the organization with a unique position in the market in an effective manner.
The branding strategy of Coca Cola company has been focussed on the emotions that are held by the loyal customers. The company has always stressed more on the experience that is provided to the customers rather than only the products. The personality of the brand that is based on imagination, lifestyle, innovation, liberty regained and dreams have provided the company the position that it holds presently. The experience that is provided by Coca Cola to the customers is based on the highly innovative products of the organization (Thoeni, Marshall and Campbell 2016).
The consumers are able to identify the products of an organization with the help of the brand name that has been created in the market. The main factors that are related to the successful brand name of Coca Cola company are based on the taste and market position. Coca Cola has also taken care of the competition that exists in the market so that its position can be created in an effective manner. The ways by which the consumers think about the brand are also helpful in the positioning of its products. The positioning strategy that has been implemented by Coca Cola is based on the usage of products by the customers and the benefits that are provided to them.
The services that are offered by the company not only based on the promise of the brand, it is also further related to the fundamental reason behind the delivering the promise. The brand positioning strategy is mainly based on the ways by which the brand is able to create its right place in the market. The high awareness related to the brand in the airlines industry is an important factor that affects the position that can be created. The connection that has been effectively established between the brand and the customers thereby leads to loyalty and long term partnership as well (Venter, Wright and Dibb 2015). This helps Emirates Airlines to differentiate itself and its services from the other players in the market in an effective manner (Yeh, Jewell and Thomas 2017). The advertisements that are designed by Emirates are also based on the different positioning strategies. The positioning based activities have played an important role in the ways by which Emirates Airlines has created an image in the minds of the consumers.
The creativity and innovation levels of the Kelloggs have been an important part of the image that has been formed about the brand in the minds of the consumers (Zia and Kumar 2016). The company has thereby been able to create a brand which is different from the other organizations in the food industry. The customers have been an important part of the making of the brand of Kelloggs in the highly competitive industry (Yeh, Jewell and Thomas 2017). The user base of Kelloggs Special K has been the health conscious group of people who have been able to create an image of the company which is unique from the others in the industry (Milichovsky and Simberova 2015).
The discussion can be concluded by stating that the segmentation, targeting and positioning based strategy implemented by the organizations are able to provide a base for the formation of marketing strategy. The segmentation of the market helps in the formation of groups of people. The particular groups of people are then targeted with the help of the products of the organization. The companies are then able to position themselves in the market with the help of different products and services that it offers to the customers all over the world. Apple, Emirates, Coca Cola, Kelloggs and Chanel have been able to implement these strategies in an effective manner for the purpose of creating a different position in the market. The positions that have been created by brand in the industries have proved to be different from the others in the market. The STP model has thereby an effective and efficient strategy that has helped the companies to place their products and services in the industry.
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