Targeting and market positioning

Creating segments[ edit ] "Market-segmentation research and practice has a long history, and the breadth and success of segmentation applications continues to flourish, with novel and unorthodox profiling applications now reaching beyond the boundaries of a traditional marketing focus". Market Segmentation can be achieved with 5 steps focusing on the core elements of the segmentation. Define your target market, trends and scope of segmentation.

Targeting and market positioning

Definitions[ edit ] David Ogilvy noted that while there was no real consensus as to the meaning of positioning among marketing experts, his definition is "what a product does, and who it is for". For instance, Dove has been successfully positioned as bars of soap for women with dry hands, vs.

In an article, Industrial Marketing, published inJack Trout stated that positioning is a mental device used by consumers to simplify information inputs and store new information in a logical place. He said this is important because the typical consumer is overwhelmed with unwanted advertising, and has a natural tendency to discard all information that does not immediately find a comfortable and empty slot in their mind.

The Battle for Your Mind, the duo expanded the definition as "an organized system for finding a window in the mind. It is based on the concept that communication can only take place at the right time and under the right circumstances". In marketing, value is defined as the difference between a prospective customer's evaluation of the benefits and costs of one product when compared with others.

Value can be expressed in numerous forms including product benefits, features, style, value for money.

Market Segmentation, Targeting and Positioning

Product differentiation The precise origins of the positioning concept are unclear. CanoSchwartzkopf and others have argued that the concepts of market segmentation and positioning were central to the tacit knowledge that informed brand advertising from the s, but did not become codified in marketing textbooks and journal articles until the s and 60s.

Ries and Trout, both former advertising executives, published articles about positioning in Industrial Marketing in and Advertising Age in InRies and Trout published their now classic book, Positioning: The Battle for Your Mind. However, the claim that Ries and Trout devised the concept has been challenged by marketing scholars.

According to Stephen A. Fox, Al Ries and Jack Trout "resurrected the concept and made it their trademark. Ogilvy's own writings indicate that he was well aware of the concept and drilled his creative team with this idea from at least the s. Among other things, Ogilvy wrote that "the most important decision is how to position your product" and, [14] "Everyone in the organization should understand the brand positioning and use it as context for making decisions" [15] and "Every advertisement is part of the long-term investment in the personality of the brand.

In relation to a Dove campaign launched inOgilvy explained, "I could have positioned Dove as a detergent bar for men with dirty hands, but chose instead to position it as a toilet bar for women with dry skin. This is still working 25 years later.

We positioned it as a car for winter. Three years later it was voted the best car for Norwegian winters. Cano, for example, has argued that marketing practitioners followed competitor-based approaches to both market segmentation and product positioning in the first decades of the twentieth century; long before these concepts were introduced into the marketing literature in the s and 60s.

Walter Thompson JWTbegan to focus on developing brand personality, brand image and brand identity—concepts that are very closely related to positioning. Across the Atlantic, the English agency, W. Crawford's Ltd, began to use the concept of 'product personality' and the 'advertising idea' arguing that in order to stimulate sales and create a 'buying habit' advertising had to 'build a definitive association of ideas round the goods'.

Targeting and market positioning

The agency suggested that the traditional positioning as a product for woolen garments should be broadened so that consumers would see it as a soap for use on all fine fabrics in the household. To implement, Lux was repositioned with a more up-market posture, and began a long association with expensive clothing and high fashion.

Targeting Approaches

Cano has argued that the positioning strategy JWT used for Lux exhibited an insightful understanding of the way that consumers mentally construct brand images.

JWT recognised that advertising effectively manipulated socially shared symbols. In the case of Lux, the brand disconnected from images of household drudgery, and connected with images of leisure and fashion.

Ries and Trout codified the tacit knowledge that was available in the advertising industry; popularising the positioning concept with the publication their articles and books.

Ries and Trout were influential in diffusing the concept of positioning from the advertising community through to the broader marketing community.

Their articles were to become highly influential. In Ries and Trout published their classic book, Positioning: The concept enjoys ongoing currency among both advertisers and marketers as suggested by Maggard [3] who notes that positioning provides planners with a valuable conceptual vehicle, which is effectively used to make various strategy techniques more meaningful and more productive.

The article, "How Brands Were Born: A Brief History of Modern Marketing," states, "This marked the start of almost 50 years of marketing where 'winning' was determined by understanding the consumer better than competitors and getting the total 'brand mix' right.

Market Segmentation, Targeting and Positioning

Traditionally called product positioning, the concept was limited due to its focus on the product alone. Maggard notes that positioning provides planners with a valuable conceptual vehicle for implementation of more meaningful and productive marketing strategies.

However, in the book Get to Aha! Discover Your Positioning DNA and Dominate Your Competition, Andy Cunningham proposes that branding is actually "derived from positioning; it is the emotional expression of positioning. Branding is the yang to positioning's yin, and when both pieces come together, you have a sense of the company's identity as a whole" [26].How to Use Situational Analysis and STP in Your Marketing Plan | Segmenting, Targeting, and Positioning.

How to Use Situational Analysis and STP in Your Marketing Plan | Segmenting, Targeting, and Positioning. The target market is where PepsiCo targeting starts, focusing on all consumers who buy soft drinks (the general market) whichs is a.

A market positioning strategy is built on business data and seeks to compose the precise chain of words to balance concepts of differentiation, distinction, and similarity in . Today, Segmentation, Targeting and Positioning (STP) is a familiar strategic approach in Modern Marketing.

It is one of the most commonly applied marketing models in practice. In our poll asking about the most popular marketing model it is the second most popular.

In this lesson, we will introduce you to the activities, viz., segmentation, targeting and positioning, that are collectively referred to as marketing srmvision.com you work out this lesson, you should be able to: Segment the markets based on several segmentation variables.

Targeting and market positioning

Positioning is part of the broader marketing strategy which includes three basic decision levels, namely segmentation, targeting and positioning, sometimes known as the S-T-P approach: Segmentation: refers to the process of dividing a broad consumer or business market, normally consisting of existing and potential customers, into sub-groups of.

Segmentation Targeting Positioning (STP) in Marketing Targeting is the post step to market segmentation. and you also view my detailed blog on Segmentation Targeting Positioning (STP) in.

Segmenting-targeting-positioning - Wikipedia