Segmenting-targeting-positioning: Difference between revisions

Revision as of 22:14, 17 September 2022

Revision as of 03:31, 4 January 2023

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{{See|Market analysis|Market segmentation}}

Segmenting can be referred to as a process of segregating the market on the basis of different variables.<ref>{{Cite web|last=Alter|first=Tom|date=June 14, 2018|title=What is STP model in Marketing?|url=https://www.makemyassignments.com/blog/what-is-the-stp-model-in-marketing/|url-status=live|access-date=November 22, 2021|website=Make My Assignments}}</ref> However, segmenting a market has widely been debated over the years as researchers have argued over what variables to consider when dividing the market. Approaches through social, economic and individual factors, such as brand loyalty, have been considered<ref>{{Cite book|title = Marketing, Planning and Strategy|last = Jain|first = S C|publisher = South-Western Publishing Co.|year = 1993|___location = Cincinnati, OH, United States}}</ref> along with the more widely recognized geographic, psychographics, demographic and behavioral variables proposed by Philip Kotler.<ref>{{Cite book|title = Marketing Management Analysis, Planning, Implementation, and Control|last = Kotler|first = Philip|publisher = Prentice Hall International|year = 1997|___location = New Jersey}}</ref> Since a single product offered by a firm cannot satisfy the needs of all of the consumers, segmenting a market therefore, is a process of ''organising'' the market into groups that a business can gain a competitive advantage in and satisfy its needs. They must, however, avoid over-fragmenting the market as the diversity can make it difficult to profitably serve the smaller markets.<ref name=":1">{{Cite book|title = Business to Business Marketing|lastlast1 = Vitale|firstfirst1 = Robert|last2 = Giglierano|first2 = Joseph|publisher = South-Western publishing|year = 2002|___location = Mason, Ohio}}</ref> The characteristics marketers are looking for are measurability, accessibility, sustainability and actionability.

* Measurability – The understanding of size, purchasing characteristics and value needs of a particular segment

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== Targeting ==

{{See|Target market}}

Targeting is a follow on process from segmentation, and is the process of actually determining the select markets and planning the advertising media used to make the segment appealing.<ref name=":2" /> Targeting is a changing environment. Traditional targeting practices of advertising through print and other media sources, has made way for a social media presence, leading a much more 'web-connected' focus.<ref>{{Cite book|title = Web Information Systems Engineering - WISE 2008|lastlast1 = Jaworska|firstfirst1 = Joanna|last2 = Sydow|first2 = Marcin|publisher = Springer Berlin Heidelberg|year = 2008|___location = Warszawa|pages = 62–76}}</ref> Behavioural targeting is a product of this change, and focuses on the optimization of online advertising and data collection to send a message to potential segments. This process is based around the collection of 'cookies', small pieces of information collected by a consumer's browser and sold to businesses to identify potential segments to appeal to.<ref name=":2" /> For example, someone consistently accessing photography based searches is likely to have advertisements for camera sales appear, due to the cookie information they deliver showing an interest in this area.<ref name=":3">{{Cite book|title = Behavioural Targeting: An Online Analysis for Efficient Media Planning?|last = Klever|first = Alice|publisher = Diplomica Verlag|year = 2009|___location = Hamburg, Germany}}</ref> Whilst targeting a market, there are three different market coverage choices to consider – undifferentiated, differentiated and niche marketing.<ref name=":3" /> Choosing which targeting choice to pursue depends on the product or service being offered. Undifferentiated marketing is the best option to focus on the market as a whole and to promote products that have a wide target segment, whilst differentiated and niche marketing are more specialized and focus on smaller, more selective segments.<ref name=":3" />

== Positioning ==

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{{See|Industrial market segmentation}}

The process described above can be used for both business-to-customer as well as business-to-business marketing. Although most variables used in segmenting the market are based on customer characteristics, business characteristics can be described using the variables which are not depending on the type of buyer.<ref>{{Cite journal|lastlast1=Mora Cortez|firstfirst1=Roberto|last2=Højbjerg Clarke|first2=Ann|last3=Freytag|first3=Per Vagn|date=2021-03-01|title=B2B market segmentation: A systematic review and research agenda|url=https://www.sciencedirect.com/science/article/pii/S0148296320309073|journal=Journal of Business Research|language=en|volume=126|pages=415–428|doi=10.1016/j.jbusres.2020.12.070|s2cid=233840095 |issn=0148-2963}}</ref> There are however methods for creating a positioning statement for both B2C and B2B segments. One of these methods is [[MIPS: a method for managing industrial positioning strategies]] by Muhlbacher, Dreher and Gabriel-Ritter (1994).

== See also ==