Example The Adventure Travel Company is an online travel agency that organizes worldwide adventure vacations. Segment B consists of middle-class families, who want safe, family-friendly vacation packages that make it easy and fun to travel with children. Segment C comprises upscale retirees, who are looking for stylish and luxurious vacations in well-known locations such as Paris and Rome.
Most of you would remember those early morning or any other equally sleepy hour lectures when your marketing professor used to harp on and on about the customer being the be-all and end-all of marketing, and by the end of the course some of you probably were even convinced that it was true.
But then work caught on and you got so focussed internally on your processes, protocols, etc. Question is, can you still make money and grow?
And to understand those customer choices, is by no means an easy task. And thus to make solid business sense your segmentation study should actually try to answer not just who socio-demographic your customers are or what behavioural they do, but go beyond and answer that why attitudes and needs they make such choices.
One of the temptations marketers tend to give in is to go blindly after the biggest segment in volume or value. While it can be the segment with the biggest potential in itself, but the question to ask oneself is that can you even begin to serve the specific needs of that segment, and are you, given your present strengths, well placed to succeed in that segment, which will be targeted by multiple other competitors for obvious reasons.
So even though some segments may be big and very attractive, but your likelihood of succeeding with them may be very slim. You understood their attitudes in the segmentation study, but you also further need to understand what will their attitude be towards the product you have conceptualised.
You also need to be clear that you have a competitive advantage for the target segment and that your choices are driven by robust data, and not merely intuition.
Hence, targeting is more about in-depth analysis and making the right and sometimes very hard choices and sacrifices. But, tough luck mate! Now is when the real thing begins It is the space you want to own in the mind of the prospect and as the name suggests, the process involves positioning your brand of the product in a unique way within the mind of your target audience.
Probably not something you wanted, right? Can you deliver a pizza in under 30 minutes? Well, you might, but can you do it over and over again, hundreds of times can you sustain it? If not, then probably not a good idea to position yourself on the basis of a minute delivery.
Because even though you may claim that positioning for your product, but the customers would only remember the one who can actually DO that kind of thing repeatedly remember what I earlier mentioned about positioning being what you do in the mind of the prospect.
These four operating words drive the positioning of a brand. There are whole lot of intermediate processes and activities involved, like insight generation, setting up specific business and strategic objectives, developing a strong value proposition, etc. How has your marketing experience been lately, and what real world challenges did you face?
Let us know in commentsZara and Uniqlo are chosen as the offerings of this report due to their established brand presence in Malaysia. Although both brands appear undistinguishable, a thorough analysis of their segmentation, targeting, positioning and marketing mix strategies, with consideration of their environmental forces, indicates notable differences.
Segmentation, Targeting and Positioning (STP) Model What Is the STP Process in Marketing? You can learn another strategy skills, like this, by joining the Mind Tools Club. Segmentation and targeting our services to our customers also helped us to achieve competitive advantage. Michele Mind Tools Team.
View All Comments. Previous. 1 CHAPTER 7 SEGMENTATION, TARGETING, AND POSITIONING MARKET SEGMENTATION Represents an effort to identify and categorize groups of customers and countries according to common characteristics Seniors Boomers Generation.
Zara Vs. Uniqlo: Comparing Business Models. By This unique feature of the company's strategy has allowed Zara to appeal to a broader number of customers with unique tastes. Turnitin provides instructors with the tools to prevent plagiarism, engage students in the writing process, and provide personalized feedback.
Oct 31, · POM: Session10 Marketing Strategy - Segmentation Zara, a Spanish retail brand is very popular in almost all age groups. Positioning consists of arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers.
With their efforts Zara is able to.