Market Segmentation Assignment Solution

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Added on 2020-10-05

Market Segmentation Assignment Solution

Added on 2020-10-05

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MARKETING

Market Segmentation Assignment Solution_1

TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1THE STP PROCESS.......................................................................................................................1SEGMENTATION..........................................................................................................................13.1 Characteristics of market segmentation................................................................................23.2 Market Segmentation Criteria...............................................................................................33.3 Merits of Market segmentation.............................................................................................4TARGETING...................................................................................................................................4POSITIONING................................................................................................................................5RECOMMENDATION...................................................................................................................6CONCLUSION................................................................................................................................7

Market Segmentation Assignment Solution_2

INTRODUCTIONMarketing is referred as study and management of exchange relationships as it is businessprocess to satisfy and create relationship along with satisfying customers. The present report willdiscuss about STP process as essence of strategic marketing as it is essential model forapplication and study of marketing. It will articulate about each element and detailed informationabout segmentation as goal of STP process is for directing organization to implementation anddevelopment of proper marketing mix. Present report will articulate the process of marketsegmentation, targeting and positioning along with their feature. Report will also cover theadvantage of these marketing efforts. Lastly, recommendation will be given to marketingmanager for efficient marketing planning. THE STP PROCESSThis process provides demonstration about association among overall market and methodof organization through which it competes in market. The marketing is combination ofsegmentation, targeting and positioning whereas this model is useful for designing plans ofmarketing communication as it helps marketers for prioritizing proposition along with deliveringand developing relevant and personalized messages for involving with various audiences. Insimple words, it is fundamental concept for purpose of understanding strategies and marketing ofbusiness. This lays special emphasis on commercial effectiveness, choosing valuable segmentswith context of business and developing strategy of product positioning and marketing mix forevery segment.SEGMENTATIONMarket segmentation is considered as process to group people on collaborative aspectwith smaller segments along with identical needs which reflects similar buying pattern.Generally, it is performed for differentiating product or for targetting particular group of peopleto earn margin. Marketing manager divides people into small cluster so that they can makepersonalised marketing efforts for different group of buyer. Segmentation lower the chances offailure of marketing campaign because it tries to cover all the need and preference of particular1

Market Segmentation Assignment Solution_3

group. For instance people belongs to middle income level can be put in one segmentation, onthe other side buyer who have similar like and dislikes would be categorises in one group. It notonly help in design the marketing and promotions but marketing manager also get to know moreabout people, like what would be their response in launch new feature in product, or change inprice of the product. Marketing leader take action according to the nature of these people asbuyer who possessed high cultural value would not accept promotion containing anti socialitymassage and element (Schlegelmilch, 2016). Apart from promotion, distribution decision,product deign decision, effective utilisation of organisational resources and timing of differentpromotional activities are some other indirect advantage of segmentation process.3.1 Characteristics of market segmentationWith context of market segmentation, it is categorised in four recognised variables whichare detailed as below:Demographic segmentation: This is replicated as broadest type which is highly used byvarious organization to acquire correct amount of population in product consumption. It haspresence of its own variables like gender, age, family, size, religion, nationality and occupation.Demographic segmentation analysis is easy as manager can use census data to know how, whereand to whom can be target. Customer loyal will be increase with great intensity because buyerreceive what they want. For instance- manager decided to render product in different size to aimdifferent size of family member. Advertisement campaigns is one of the best examples of demographic segmentation thatTurkish Airlines ıs takıng ınto consideration, about the customer’s income and occupations also.Turkısh Aırlınes have enquıred about the potentials of this segment; they compromise theircustomer satısfactıons as well as pleasures. However, this advertisement campaign appeals uponpotential business class travelers but it doesnot draw the attention on this concept inhighest level. This type of advertisement help the company for taking ıntoconsiderations for other segments to create brand appreciation. In order todımınısh the disappointment of this campaign, Turkısh Aırlınes desire to usedifferent media types in combination. Behavioural segmentation: It splits population on basis of behaviour, decision makingand usage pattern. Even with reference to individual behaviour, the product is promoted. Buyerwith same buying behaviour pattern like quantity and frequency of purchase a product, product2

Market Segmentation Assignment Solution_4

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