Further on Kotler writes that companies must not do the following mistakes: Fail to offer a strong benefit or reason to buy the product Over positioning: To create a position that is too tight, which results in that you miss customers.
But how does the company create this customer value? The marketing strategy addresses exactly that. It is the marketing logic by which the firm wants to create this customer value and achieve these profitable customer relationships.
But consumers are in the centre of marketing. Therefore, we should not just establish a marketing strategy — it should be a customer-driven marketing strategy.
How to create customer value and how to achieve profitable relationships?
First of all, the company has to know which customers it will serve. It must segment the market based on certain criteria that are relevant to the company. Then, it has to select one or several market segments to serve. We call these two steps segmentation and targeting.
Finally, the company decides how it is going to serve the selected customers. In order to do so, the company must identify the total market, then divide it into smaller segments. Next, select the most promising ones and then focus on how to serve and satisfy the customers in the selected segments.
But before we can satisfy customers, we first have to understand their needs and wants. Therefore, the process of establishing a marketing strategy requires thorough and careful customer analysis.
Segmentation, Targeting, Positioning and Differentiation — necessary for an integrated Marketing Strategy. Segmentation — Step 1 of the Marketing Strategy Any company should know that it cannot serve all consumers in the total market — at least not profitably and in the same way.
The variety of different kinds of consumers and their needs is simply too large. There are too many differing types of customers, characteristics, needs, wants, and behaviours. Thus, every company should not try to focus on the complete market. Instead, it should divide it up into small segments.
This is the first step of setting up a marketing strategy. The market can be seen as a huge pie. But the company has only one mouth. So, it should choose the part of the pie which appears most delicious for the company. In other words, the marketer must determine which of all the segments offer the best opportunities.
We can define market segmentation as the process of dividing a market into distinct groups of customers who have different characteristics, needs and behaviours and therefore require different products or marketing programmes. Consequently, we can look at a market segment as a group of consumers responding in a similar way to a set of marketing efforts.
Therefore, we have to group consumers, based on various variables which are relevant to the company. These variables can be based on geographic, demographic, psychographic and behavioural factors.
But not every variable is equally useful for each company. For instance, a car manufacturer would gain little by distinguishing between vegetarians and non-vegetarians. However, for a meat company, this may be the most important variable in the marketing strategy.
An example for segmentation can easily be recognized in nearly every market. You will find small, economical cars for those who care mainly about price and operating economy. But on the other side there are big, sportive cars with large engines for those who want the best performing cars regardless of price.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. In our poll asking about the most popular marketing model it is the second most . • Samsung launched the Galaxy Tab in India on 10 November with more than 45% of which is the contribution of Samsung Galaxy Tab models.
Positioning Slim and Sleek. creating a difference and new possibilities to explore a lot. example, positioning, segmentation, targeting Feb 11 A good example of the STP process (segmentation, targeting, positioning) can be found during the Cola Wars in the s between Coca-Cola and Pepsi-Cola.
Secondly and more importantly, Samsung Electronics is a world-leading company in more than just smartphones: as our chart illustrates, the company generates tens of billions of dollars in revenue. Segmenting cosmetic procedures markets using beneﬁ t segmentation: A study of the offering and better positioning, 4 as well as generated during segmentation studies regarding target segments provide guidance for advertising execution, media.
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