Market Targeting and Positioning - Market Segmentation, Marketing Management Video Lecture | Marketing Management - B Com

hi there in this business topic video
we're going to introduce you to an
important and widely used model of
marketing strategy called STP which is
all about segmentation targeting and
positioning now when businesses make
decisions to how to develop their
marketing strategy and decide how to try
to create value for customers there are
essentially two issues they have to
consider firstly of course they have to
choose which customers they want to
target which customers they want to sell
to and the challenge here is to segment
the market define the different parts of
the market that are most attractive and
then to target which segments do they
want to focus on in order to have the
best chance of success and having
identified the market segments and which
are the ones they want to target the
next question is how best to compete in
that market how to serve the customers
in the target market segment and the
issue here is around market positioning
how do you identify the right
positioning for your product in terms of
the features that the target customers
want so all is well look very briefly at
each of these things market segmentation
targeting and positioning we're looking
more detail at them in separate topic
videos but for now let's just have an
overview of each of the parts of this
model segmentation targeting positioning
which is often shorter than shortened to
s TP market segmentation is about
identifying the different parts of the
market where customers have similar
needs and wants of course the segments
can be very large where nearly all the
consumers in the market have similar
needs and once or it could be very
specialist a niche segment our different
ways as we'll see in a later video of
segmenting a market perhaps based around
how to link them so income segmentation
perhaps based around age or gender a
demographic segmentation where people
live geographic segmentation all the
ways in which consumers behave
behavioral segmentation so we'll look at
those in more detail in a later video
or you need to offer this stage though
is that there are different ways of
segmenting markets not just one the key
benefits of segmenting a market is it
enables a business to be much more
focused around where it places its
marketing efforts and in particular
that's useful if you're developing new
products and services designed to meet
the specific needs and wants of the
customers in that segment essentially
the most important benefits of market
segmentation is it enables the marketing
mix to be more accurate to be better
focused one of the issues of course with
segmentation is that this isn't a
precise science there's a lot of overlap
between segments and just because you
can identify what you believe to be a
group of customers with similar needs
and wants doesn't mean that you'll be
able to reach those customers and
another issue with market segmentation
is that these segments are fast changing
and very dynamic so whilst you might be
using some reasonably up-to-date
information about those segments it
could easily be out of date by the time
you're able to action it so a market
segmentation is all about identifying
the different parts of the market the
next issue is how do you target the
customers in the segments that you want
to it that you want to compete in there
are three different ways of targeting a
market let's just briefly look at those
firstly there's mass marketing which is
sometimes known as undifferentiated
targeting and the strategy here is that
you target the whole market you don't
spend too much time trying to break the
market down into different segments you
try to find ways in which all customers
need to wants can be met and try to
deliver a product that meets all of
those needs and wants
however very few businesses are able to
do that successfully and increasingly of
course what they find themselves doing
is trying to break the market down into
segments and in some way to
differentiate their product so the idea
here the strategy here is that you
identify one or two or more target
market segments or within the broad
market and then you design products and
services that hopefully will be hitting
the needs of customers in each segment
what are the implications for this is
that you're going to probably need a
separate marketing plan and a separate
marketing mix for each of those segments
and the third approach of targeting is
to really focus and really concentrate
your marketing concentrate your products
on us both small part of the overall
market its call initial concentrated
marketing and the aim here of course is
to try and identify a profitable niche
where you can very quickly build a
strong market position and hopefully
maximize the returns and so we've dealt
with targeting now and we've dealt with
market segmentation let's just spend a
couple of minutes on what we mean by
market positioning so having chosen
which segments we want to target and
which customers are in those segments
what we now have to do is to decide how
to compete effectively in that target
market and this concept is called the
value proposition that's the essential
part of market positioning the important
thing here is to always remember that
market positioning and the value
proposition should be from the customer
point of view not from the business's
point of view because ultimately its
customers who buy products and services
and if their view on what value is is
different from what yours is that's
tough it's that those the guys who are
making the decisions so the value
proposition is all about the position
that the product takes in the market
based around the dimensions that are
important from the customers point of
view on one way of of mapping this
position particularly compared to the
competition is to put together what's
known as a market map or a positioning
map so let's just briefly look at what
when
by a positioning map markets of course
in terms of what customers want can be a
defining in various different dimensions
obviously the most obvious one I guess
is low price to high price and similarly
customers also have differently to once
based around their need for basic
quality all the way through to high
quality but there are lots of other
dimensions for example a product could
be a necessity or it could at the other
end of the scale be a luxury it could be
very low tech it could be very high tech
so what a market map or positioning map
tries to do is to map the different
positions of value propositions of
products based around a selection of two
dimensions and clearly those the
dimensions that are chosen are
subjective as is the position of the
product on the on the map on the
positioning map so on the screen there
is this an example of how you might
position a bunch of different chocolate
products based around to traditional
dimensions of quality and price and you
might argue as to whether we've put
those products in the right position but
that's just one perspective on that
product and that market from one
customer's perspective that's the idea
of the positioning map to try and
identify where there may be some gaps in
the market that may be successful now
don't forget with positioning the key
issue here is its from the point of view
of customers and what a business needs
to do is to try to find a value
proposition that gives it a competitive
advantage what this means is that from
the customer point of view the product
is perceived as being offering superior
value however the customer determines
value but there are lots of different
ways in which value can be delivered
let's just have a look at for possible
positioning strategies before we finish
one way of course is to offer much more
value but for a low price lots of
businesses try to offer that to stick
that good quality acceptable quality but
for very low prices where the perceived
value is is therefore high compared to
the price how about the third one down
there off
more for the same so the price stays the
same but you reposition your product by
maybe offering some new features or a
better performance for the same price
that might be a successful positioning
strategy the key issue here is that
there's more than one way of positioning
a product for success but it's all about
understanding how about how customers
perceive value so what we've done is
we've just looked briefly there at this
concept this marketing concept called
STP segmentation targeting and
positioning and what we'll do is we'll
look at each of those three elements of
marketing strategy more detail in a
subsequent topic video