LITERATURE REVIEW
The Segmentation, Targeting and Positioning is an essential aspect for conducting business by any organization. There are many important aspects of STP. The three most important aspects of STP are as follows-
1. Increases Sales
According to West and Ibrahim (2015), one of the most important function due to which the Segmentation, Targeting and Positioning (STP) analysis is adopted and enacted is due to the desire to increase sales and generate more revenues. The revenue generation is one of the most important feature due to which the Marketing Plan is strategized and formulated. The sales can be increased by adopting innovative ways and plans to lure in more customers and clients. The aspect of STP is to enable the people to be benefitted by the new and innovative products or the services which will be provided by the organization. In order to implement the STP, the customers must be clearly defined and the age group of the customers must be clearly outlined so that the marketing team targets those customers for whom the products or the services are specifically launched. The Segmentation, Targeting and positioning also fosters the need to identify the problem clearly. If the sales are not achieving the desired rates, then the STP must concentrate on increasing the Sales revenue to the desired rates so that the revenues are increased and the organization is able to earn profitable returns (Dibb 2017). The Segmentation, Targeting and Positioning are also important to assess the generation of revenues in the market so that the organization is able to generate more revenues according to its human resource as well as capital resources (Weinstein and Winston 2016). There is an immediate need to ascertain as to whether the organization can implement the innovative changes in the organization so as to create a new impact in the minds of the customers and attract them to buy the products and the services.
2. Bringing in New Customers
Another important feature of the Segmentation, Training and Positioning is the need to lure in more customers and clients so that the marketing plan results in the generation of profits for the organization as well as the services are able to generate profitable returns. The need to attract customers and clients is an important feature of the STP and it enables the organization to earn more revenues and generate more sales. According to Zia and Kumar (2016), the profitability of the organization can be increased by displaying interesting and attractive marketing strategies so that these advertisements and marketing strategies achieve the objective of garnering the attention of the people for a considerable amount of time. The objective of formulating new plans and strategies is to garner as much attention as possible of the new customers as well as to maintain the old customers so that they remain loyal to the organization and the firm (Venter, Wright and Dibb 2015). The new customers can be lured by increasing the innovation and creative aspects of advertising. The aspects of marketing the products through the content and social media platforms has gained immense popularity in recent times, therefore, it is extremely important to maintain the aspect of researching on the new and innovative ways to lure in more customers (Kotler 2015). The marketing team plays an important role in an organization as they perform the most important function of strategizing as well as executing those strategies in the organization as well as the market. The outcome of the organization depends on the execution of the STP by the Marketing team of the organization. The implementation of the Segmentation, Targeting and the Positioning aspects of the organization are directly related to the efforts of the Marketing Team in the organization (Nair and Ndubisi 2015). This Marketing Team has the most important function of performing the duties of inspecting the nature and the work done in the STP analysis. The Marketing Team also has the duty to assess whether the STP is implemented in an effective way and whether the task allocated to each team is done properly or not (Andaleeb 2016).
3. Introduce a new product or service
The fundamental motive behind formulating any strategy or plan and to attract more customers is to introduce a new product or to launch an innovative service so that the inclination of the customers to try out that new product reaches a penultimate position. According to Schlegelmilch (2015), t he customers are naturally attracted to new and attractive products and the innovative advertisements showcasing t he new products stays in the minds of the customers for a large amount of time. The research and development teams put in a lot of effort to try out new ideas so that the products, which come out, are durable, effective and strengthen the trust and confidence of the customers towards the organization. The customers are naturally inclined to buy any product or service launched by the organization once the customers start trusting the organization and the company. This ability to win the trust of the customers is achieved through the effective implementation of the STP (Keegan and Green 2015). It is up to the leadership of the organization as well as the Marketing team to oversee and assess the implementation of the Segmentation, Targeting and Positioning. The Segmentation, Targeting and the Positioning are also important in order to launch a new product so that the products achieve the success of the products launched or the services offered by the organization (Gupta 2017). The STP also increases the potential of the organization to try out innovative things for the better implementation of the plans and policies. The STP also enables the organization to assess the requirements of the market and bring the latest trends into the front so that the customers are able to access the latest trends and fashions (West, Ford and Ibrahim 2015)
SEGMENTATION, TARGETING AND POSITIONING ANALYSIS
There are numerous companies which have successfully implemented the Segmentation, Targeting and the positioning (STP) framework effectively. The process of the Segmentation, Targeting and the Positioning requires the effective implementation of the plan which has been formulated by the leadership as well as the organizational decision making boards. In order to evaluate a framework for the Segmentation, Targeting and the Positioning (STP) an effective and important aspect needs to be taken into consideration. This aspect is the market analysis by the organization. The organization needs to assess and evaluate the market so that it can formulate a plan for the effective implementation of the Segmentation, Targeting and Positioning (STP). The examples of three companies which are effective in implementing the Segmentation, Targeting and Positioning (STP) framework are Apple, Zara and Coca Cola.
The Zara company which specializes in the apparel and the garment manufacturing as well as the distribution of quality clothing is able to do so by effectively segmenting the market. The leaders of the Zara apparel company specialize in identifying the key feature of the market such as the identification of the market wherein the organization can sell their products and services (Gamboa and Goncalves 2014). The identification of the market is one of the most crucial aspects of the Segmentation process and it requires elaborate research and analysis using elaborate planning and proper verification of the tastes and preferences of the customers from that market. After the identification process, the next stage is to select the market from amongst the available markets. This is a very difficult task as the wrong selection will lead to financial loss for the organization. After the selection of the market, the organization needs to adapt itself according to the needs and requirements of the customers and has to address the demands of the customers. The Zara company has done extensive research in this area and even before launching any product, the Zara company takes note of the feedbacks and the recommendations of the customers and tries to incorporate those into their new designs (Mayhrhofer and Roederer 2016). The Zara company follows a policy of Zero Advertising Policy and they invest heavily in opening store rooms in new markets. They thoroughly research the market before investing their money by establishing a store room there. Zara is probably one of the few companies which manages to earn huge revenues despite investing almost nothing to the advertising aspect (Viardot and Nylund 2017). The Zara company also reduces the supply time of the products such that the Zara designer garments as soon as they are launched are instantly sent to the showrooms for the common people to purchase. This supply time usually happens in about t two weeks as compared to the months taken by the other companies. The Zara company in this way caters to the effective management and service of its customers and clients (Rodriguez, Reis and Cantista 2015).
The other important aspect of the STP framework is the Targeting aspect. The Apple company specializes in this aspect as they have effectively targeted themselves to the selected customer and the clients they cater to. The company which started from the garage of Steve Jobs’ parents has now emerged as one of the most reputed and trusted global brands in the world simply because of its emphasis on the innovation and the creative aspects of marketing. There is a global preference for Apple products and people all over the world prefer an Apple product over any other product in the world (Heding, Knudtzen and Bjerre 2015). This is due to the fact that the company has effectively targeted its customers, who are essentially the young adults to the middle aged people and who generally are high earning people or who come from affluent families. These target groups are highly respected and valued by the Apple Software company. The Apple Company specializes in creating a buzz every time their products are launched into the markets. This feature showcases the innovative as well as the thorough research which is done by the company before the launch of its products (Pace 2015). The Apple company is known for understanding the changes in the tastes and preferences of the customers and effectively implementing those changes in the newly launched products. The Apple company led by its founder CEO Steve Jobs understood the fact that innovation is the key to any organization success, therefore, they stressed on the aspect of innovation and brining in changes in their previously launched products. The customers who already are Apple product users are generally loyal to the company because of the fact that Apple offers excellent customer services to the existing customers and therefore, the customers remain loyal to the company (Phillips-Melancon and Dalakas 2014). This is how the company targets new audience as well as maintains the existing customer base. The Apple products even if they are costly and highly unaffordable for the common people across the globe, still the majority of the customers prefer buying an Apple product over any other product simply because of the guarantee that the Apple company provides. The Apple company deals in a range of products which range from mobiles such as the Apple Iphones, laptops such as Apple Mac Books and other electronic gadgets. The Apple company has also the ownership of the Macintosh software which enables the company to incorporate the Mac software into their products (Clarke and Boersma 2017). The efficiency of the Apple company can be verified from the fact that in the aspect of laptops and operating software, no company could match up to their efficiency and innovation except Windows.
The Coca-Cola brand is a global brand and has its existence in almost every country in the world. The most important feature behind the resounding success of the Coca-Cola company is that the company has been able to position itself in the global audience as an effective beverage brand. The company faces stiff competition from its rival company, the Pepsi company and even though, the Pepsi company has a huge diversification of the products, still the Coca-Cola company manages to rake in n the revenues simply because they have effectively positioned themselves in the minds of the targeted customers (Allen 2015). This is done through the effective implementation of the advertisement aspect of the company. The Coca-Cola company brings in global celebrities in their advertisements, especially the athletes and the film stars. The customers are instantly attracted to the advertisement showcasing their favorite celebrities endorsing the Coca-Cola Brand. The most essential aspect of Coca-cola brand is that the company is able to assess the market scenario effectively. The Coca-cola company is considered as the third most valuable brand in the world (Serôdio, McKee and Stuckler 2018). The Coca-Cola company focuses on the main product it manufactures, which is the beverage product. Apart from that the Coca-Cola company also has certain other important undertakings such as the Mineral water and the Health drinks. The company has positioned itself in such a way that the sport channels and the sportspeople endorsing it clicks instantly with the younger generation and the youths are attracted to try out the Coca-Cola product (Schmidt et al. 2016). The Coca-Cola company positions itself mainly to the services of the younger generation and the young adults. Coca-Cola being a global brand hires the local stars of the respective nations to endorse their products (Smarandescu and Shimp 2015). This leads to the Coca-Cola brand becoming attractive to the local nationals even though the company has its base in the United States of America.
The Segmentation, Targeting and Positioning aspect of an organization can be implemented to a much greater effect if the market survey analysis is done effectively and efficiently. The STP analysis enables the organization to earn huge revenues and profits by realigning the focus and the energy on the intended and the targeted audience. The Segmentation, Targeting and the Positioning process is considered as one of the most important features of management undertakings which is done at the time of the formation of the organization as well as the periodic implementation of the STP. The STP is done to assess and analyze a company’s quality to think innovatively and in a much creative way as well as to focus on the selected number of customers and clients. The Segmentation, Targeting and the Positioning of the organization enables the company to reassess its strengths and weaknesses so that the company is able to target its customers according to its strengths. The STP feature can be further enhanced if the expert analysts are hired to assess the situation of the organization. The experts enable the company to assess the financial resources in a much better way as compared to the overall estimation of the details. The STP analysis also enables the company to make effective plans for the future regarding the kinds of products and services they are going to launch in the market and which would be the targeted population groups the organization will target. The STP analysis also enables the organization to re-channelize their energies towards satisfying the customers who they have decided to target. There is an immediate need to make sure that the organizations indulge in effective STP designing and formulate new plans so as to achieve their targets efficiently. The leadership of the organization must make sure that the organization executes the STP as per the plan which they have formulated.
Conclusion:
From the above analysis, it is clear the Segmentation, Targeting and Positioning aspects are the most important criteria for the organization to follow and it is absolutely important for the organization to implement their plans after evaluating the STP analysis. The STP analysis enables the organization to understand the market in a much better way. The details such as the needs and preferences of the customer, the changing trends of the customer preferences as well as the overall demands of the particular age groups become clear after the effective evaluation of the market. The evaluation of the market also enables the organization to effectively channelize their human resource and capital resources so that the resources are spent efficiently upon the targeted group of customers and the organization is able to maximize its profits to a much higher level as compared to its present situation. The STP also enables the organization to double its efficiency as it is now in a much better position to assess the market once it gets the information as to what are the tastes and preferences of the market and which is the latest trend in the market. The STP also enables the organization to function in an optimized level due to the concentration of the resources and using those to satisfy the targeted customer and clients. The negative impacts of STP is that it increases the costs and burden on the organization. The excess costs of the STP implementation can be a risky cost for the organization if the organization is low on capital resources and monetary aspects. Even if the organization has to bear the excess costs and monetary expenses, still it can be a profitable venture for the organization if they can implement the STP analysis. The analysis of the STP also enables the organization to steer ahead of the rivals and the competitors in the market.
The Segmentation, Targeting and the Positioning (STP) aspects of the organization enables it to focus its energy and resources towards serving a specific customer base or client. The basic point behind the Segmentation, Targeting and the Positioning (STP) aspect of the organization is that the organization cannot cater to the needs and demands of all the customers in the world. Therefore, it is extremely important that the organization does a market survey and selects the customers to whom it will focus upon and how it will serve those customers in the long run. The overall aspect of the Segmentation, Targeting and the Positioning (STP) feature is that the
Strategic marketing is that aspect of marketing which helps in the overall management of the marketing skills. The most important feature of the Segmentation, Targeting and Positioning (STP) of the organization is to survey the market thoroughly before formulating any plans or objectives. The plans, which are formulated after surveying the markets, are done based on the Segmentation, Targeting and the Positioning (STP) feature of the Strategic Marketing Plan. The STP feature also enables the organization to streamline its energy and focus upon a selective group of customers and clients rather than targeting the impossible objective of attracting the majority of the customers. The effective implementation of the STP enables the organization to plan efficiently and effectively in terms of the plans, which are to be implemented. The minute detailing of the market is done only after the proper implementation of the STP feature. This leads to the aspect of the company making plans regarding the Segmentation, Targeting and the Positioning of the policies, which are going to be implemented. The current report analyses the Segmentation, Targeting and the Positioning of the Strategic Marketing Plan of the Organization.
Reference:
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