Marketing Fundamentals: Segmentation, Targeting and Positioning

Marketing
Fundamentals

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Understand the process of segmentation, targeting and positioning......................................1
Determine the marketing mix strategies ................................................................................4
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Basically, Marketing is the process of designing an environment in which individuals
working together in group efficiently accomplish selected aims. The process of marketing
involves tactics brands and strategies in order to promote their services or products to customers.
Marketing Fundamentals involves four things price, product, place and promotion. IT involves
channels change and tactics but these involves principles that never change. In this report, Tesco
is chosen as the company. It is a British based merchandise retailer founded in 1919 and
headquartered in Welwyn Garden City, UK. The main aim of this report is to analyse the
communication activities of the company. The main objective is to understand the process of
segmentation, targeting and positioning. In addition to that it involves the marketing mix
strategies of the company.
MAIN BODY
Understand the process of segmentation, targeting and positioning.
Segmentation, Targeting and Positioning
It involves three terms which is Segmentation, Targeting and Positioning. It is basically a
three step model which involves examination of services and products in order to communicate
their benefits to the specific customer segments. In context to Tesco, there are a set of various
micro and macro environmental factors which basically affects the marketing decisions of the
company in indirect or direct manners. The macro environmental factors which impacts the
marketing decisions can be identified through environmental scanning which includes factors
such as Technological, cultural, social, legal, political and other factors. In context to Tesco, the
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company's products or services may not be attractive for everyone therefore the company need to
engage in targeting practices and market segmentation(Arni and Laddha, 2017).
Market segmentation is basically dividing the population members into groups according to their
wants and needs in order to satisfy wants and needs of particular groups. In context to Tesco,
STP analysis helps to identify the well-defined buyers who differ in their habits and needs. The
marketing strategies used by the company are Segmentation, Targeting and Positioning in order
to promote fair trade practices.
Segmentation
In UK, the market is segmented on the basis of requirement and demand for the services and
products by the customers. The segmentation of market is a important way in order to achieve
success as it helps to divide the market into smaller segments in terms of needs, behaviour,
characteristics for which there is necessity for market strategies in a proper manner. In context to
Tesco, the marketing segmentation is used to identify the group of consumers according to the
needs and requirements. It involves three Terms Demography, Behaviour and Pyschographic.
With the help of market segmentation, the company can able to sell its unique and innovative
products in the marketplace of UK(Bailey and Brooks, 2020).
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