Essay on improving segmentation and positioning
This article describes Starbucks' market segmentation and marketing strategy. It contains the variables that the writer will use to compete with the retailer in his specialty coffee business. It also describes the product differentiation and positioning strategies that will enable the coffee shop to compete effectively in the market. Segmentation involves dividing the population into groups based on certain characteristics, while targeting involves choosing specific groups identified as a result of segmentation to sell products. Positioning refers to the selection of the marketing mix that is most suitable for the target customer segment. British Airways follows multi-segment. STP stands for segmentation, targeting and positioning. The main purpose of this study is to demonstrate the understanding of the STP concept and its importance to the success or failure of a soft drink company. The STP framework itself is quite simple and therefore quite easy to follow. As the title suggests, it consists of three key elements, namely segmentation, targeting and positioning. The decision to combine the specified concepts to construct a single entity is justified by the intrinsic interdependence within the specified constituents. The three steps required for effective marketing are segmentation, targeting and positioning. In simple terms, companies segment potential customers into relatively homogeneous groups, target the most attractive of them, and position their products and services 'according to their target market' p. 193. Marketing strategy is the execution of segmentation, targeting and positioning. Understanding the market in detail in strategic decisions and targeting suitable customer groups. This targeting should emphasize any differential benefits and adopt appropriate positioning within the target segments. Operational positioning, on the other hand, is based on marketing objectives. It focuses on the needs of the above-mentioned consumer groups. Promotions are used to change the perception of the product and its ability to meet customer needs. Strategic positioning aims to give the company a competitive advantage Ellson, 235.