Market Segmentation: A Framework for Targeting Appropriate Audiences

[Course title]
strategic marketing

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Executive Summary
The purpose of this essay is to provide a framework to exemplify how market segmentation
benefits organisations by targeting appropriate audiences. This essay will utilise concepts and
theories laid in marketing strategy books and present literature to conduct a detailed study
regarding marketing segmentation process along with applying it in industrial examples. The
chief aim behind preparing this essay is to examine Segmentation, Targeting & Positioning
(STP) Theory and the concept of marketing strategies followed by various companies.
Furthermore, by gaining knowledge related to segmentation process, this essay will also
provide generic recommendations to the examined companies.

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Table of Contents
Executive Summary...................................................................................................................0
Introduction................................................................................................................................3
Literature Review.......................................................................................................................3
Practical application / Recommendations..................................................................................6
Conclusion................................................................................................................................10
References................................................................................................................................11

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Introduction
Different customers have diversified interests and desires, thus witnessing the extensive array
of products and services available in marketplace. This diversifying buying needs and
practice makes companies impossible to fulfil every customer’s desire with one sole product
or service. In past few years, organisations have responded by providing a proliferation of
brands and products, therefore, have found it necessary to move ahead of mass marketing
towards targeted marketing strategies where they can focus on particular group of buyers.
This identification of targeted group of customers is called market segmentation where
consumers can be amassed into groups who have peculiarity in buying characteristics (Dibb
& Simkin , 2007).
Literature Review
Targeting, segmentation and positioning are three parts of process named STP that involves
taking a closer look at potential customers to determine marketing mix strategies. Targeting,
positioning and segmentation helps companies narrowing down the market into a manageable
group so that pursuing segment according to business is feasible. According to Larsen (2010),
targeting refers to those processes in which selection of specific group or people is done by
organisations to promote their products or services. It involves identification of overall
characteristics of prospective consumers share, like challenges they face and the result they
expect their product or service to be like (Kotler, 2000). Segmentation takes one position
ahead of targeting where further breaking down of potential buyers in smaller segments who