Importance of Segmentation, Targeting and Positioning in Business

Assessment
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Contents
Research topic for the Project..........................................................................................................1
Literature Review.............................................................................................................................1
Basic understanding regarding segmentation, targeting and positioning....................................1
Significance of segmentation, targeting and positioning in increasing customers base of Marks
and Spencer.................................................................................................................................1
Relationship between segmentation, targeting and positioning and business performance of
Marks and Spencer......................................................................................................................2
Aims and objectives.........................................................................................................................3
Research aim...............................................................................................................................3
Research objectives.....................................................................................................................3
Research questions......................................................................................................................3
Designing the questionnaire.............................................................................................................3
Circulating the Questionnaire..........................................................................................................5
Finding.............................................................................................................................................7
REFERENCES..............................................................................................................................18
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Research topic for the Project
“To investigate the importance of segmentation, targeting and positioning for business in
attaining competitive advantages”. A study on Marks and Spencer.
Literature Review
It is consider as an important section for undertaking research activities as it provide
theoretical framework that provide detailed information on the basis of specified topic and
research area (Islam, 2020). It is type of secondary research in which different sources are
included for gathering data such as books, journals, articles, online papers and many more. All
these can be beneficial in gathering reliable information. With the help of this, researcher can
easily draw a valid conclusion at the end of the investigation.
Basic understanding regarding segmentation, targeting and positioning
According to Juniati and et. al., (2019), Segmentation, targeting and positioning is a
process and broad framework that includes as well as simplified the market segmentation. It play
a significant role in business organization in determining the right customers so that company
can easily offer their quality products to them as per their needs and wants. In this context,
segmentation is done one the basis of different aspects such as demographic, psycho-graphic and
behavioural. In addition to this, targeting is also determining the most attractive segment from
the segmentation. It is beneficial for company in increasing the profitability level at market
place.
Significance of segmentation, targeting and positioning in increasing customers base of Marks
and Spencer
According to Nemanja Jovancic (2020) Segmentation, Targeting and Positioning assist
the company to craft messaging as well as provide the relevant messaged which engaged the
targeted and segmented audience. Main objective of STP is to attract consumers and not only to
attract consumers but getting right consumer that will interest in product. It is helpful in
developing digital strategy for the content marketing. Segmentation assists the marketers to be
efficient in context of money, time and some of the other resources. The market segmentation
permit company to learn regarding consumers. They gain upstandingness of wants and
requirements of consumers. It permits to enhance chance of engaging the people with content or
ad that resulting in efficient campaigns and also improved return on investment. On the other
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hand, positioning is place that brand mainly occupied in mind of consumers and in which manner
this distinguished from goods of competitors and differ from brand awareness. This is all about
place brand occupied in mind of target audience. Positioning is beneficial marketing tools
because it created image of company in mind of customers, highlighting necessary advantages
which differentiate goods from same product at marketplace. In marketing, targeting services
consumers and brand. This helps in improving the audience experience and marketing
strangulates as well, develop brand awareness and leads to the better services and products. The
target marketing makes this easier for the brand in order to reach at audience in authentic and
personnel way. In context to this, target marketing is about narrowing marketing scope to
manageable group of the people so that can have better interaction quality. With the help of
using targeted marketing, ads of company will effective as they are talking to right people
regarding right service or product. In context to target the customers, company can be use brand
message on niche market that is likely to purchase from company that general markets.
Relationship between segmentation, targeting and positioning and business performance of
Marks and Spencer
According to Taherdangkoo, Mona and Ghasemi, (2019), In a business and the
performance of the company, STP that stands for (Segmentation, Targeting, and Positioning)
plays a crucial role in getting the best and suitable customers. One can see a relationship between
STP and the performance of the firm. Segmentation: helps the company in classifying its
customers based on some factors like demography, geographical position, behaviour, etc.,
targeting: marketing about the produced commodity to a specific group or the
market. Positioning: this category of the STP helps the company in building a brand image in
the minds of customers. Thus, it helps customers in differentiating the product against the rival
firm that is selling a similar type of product. Therefore, by utilizing STP in the best way through
appropriate resources the company will be able to attract the right customers, and as a result, the
sale will increase. A rise in marketing efficiency will improve the performance level of the firm.
Moreover, the amount of cost required for promotional activities will get reduced because of the
company’s performance and popularity. Henceforth, STP, and performance of the company are
interlinked with one another. If STP will be done correctly, then there will be an increase in
performance and growth.
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Aims and objectives
Research aim
“To investigate the importance of segmentation, targeting and positioning for business in
attaining competitive advantages”. A study on Marks and Spencer.
Research objectives
 To develop basic understanding regarding segmentation, targeting and positioning.
 To determine the significance of segmentation, targeting and positioning in increasing
customers base of Marks and Spencer.
 To examine the relationship between segmentation, targeting and positioning and
business performance of Marks and Spencer.
Research questions
 What is the basic understanding regarding segmentation, targeting and positioning?
 What is the significance of segmentation, targeting and positioning in increasing
customers base of Marks and Spencer?
 What is the relationship between segmentation, targeting and positioning and business
performance of Marks and Spencer?
Designing the questionnaire
Questionnaire
Q1) Do you have any idea about the segmentation, targeting and positioning?
a) Yes
b) No
Q2) Does segmentation, targeting and positioning is important for company in improving
its performance?
a) Yes
b) No
Q3) What are the importance of segmentation, targeting and positioning in increasing
customers base of Marks and Spencer?
a) Attract the right customers
b) Increase marketing efficiency
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c) Customers retention
d) Increase profitability
Q4) What are the different basis of segmentation used by Marks and Spencer?
a) Demographic segmentation
b) Psycho-graphic segmentation.
c) Behavioural segmentation
Q5) How company use STP to develop marketing strategies for increasing their customers
base?
a) Market segmentation
a) Select the target market
c) Product positioning
d) Develop on the Optimal marking mix
Q6) What are the different types of market target strategies that used by company to
target their customers?
a) Mass marketing
b) Segmented marketing
c) Concentrated marketing
d) Micro-marketing.
Q7) As per your point of view, does STP is a interconnected marketing process for
business organization?
a) Yes
b) No
Q8) What are the different positioning strategies used by Marks and Spencer in market
place?
a) Positioning based on price
b) Positioning based on competition.
c) Positioning based on quality
d) Positioning based on product use
e) Positioning based on product characteristics
Q9) Does segmentation, targeting and positioning help company in increasing their
profitability level?
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