Concept of Segmentation, Targeting, and Positioning for Product or Services

This report discusses the concept of segmentation, targeting, and positioning for product or services. It explores the importance of innovation in new products and services and the specific target group within the framework of the organization. The report also highlights the role of data in improving relationship marketing.

Sales and Marketing
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INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Concept of segmentation, targeting and positioning for product or services..............................1
Create a rationale for innovation in a new product and services................................................4
Specific target group within the framework of organisation......................................................6
Role of data in improving relationship marketing......................................................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12
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INTRODUCTION
Sales is define as an activities which is related to selling the goods in a given target time.
This is a transaction among two or more parties in which customer receives intangible or
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tangible goods, assets in terms of exchange for money (Johnson and Matthes, 2018). In context
of financial market sales refers to agreement between two people that is seller and buyer as
money is regards in terms of security. When there is service or item which is transferred by one
party to another with no compensation, this step can be regards as gift or donation.
Marketing is define as process in which company undertakes many activities for
promoting buying or selling of goods and services. It mainly includes advertising, delivering,
selling of products or services to other business or customers. It is define as an action or strategy
which helps organisation for achieve goals & objectives for enhance their profits and sales or
improved their brand perception.
In this report it Tesla Plc, is taken. It is an American electric vehicles and company of
clean energy which have their headquartered in Palo Alto, California. This industry is mainly
deals in automotive, energy production, energy storage sector which served area worldwide. The
products which is provide by company are batteries, electric vehicles, solar roofs and panel.
In this report it covers concepts of segmentation, positioning and targeting of product by
innovation of new products which provide research of needs of customers. In addition it also
includes marketing strategies and techniques for designing sales and marketing strategies of
organisation. Furthermore, there is a evaluation of role of data for improving relationship with
customers by identifying their needs and wants.
MAIN BODY
Concept of segmentation, targeting and positioning for product or services.
Tesla Plc, is an automotive company which deals in electric vehicles, solar panels,
batteries and so on. Now company have to start a new innovation in their products or cars such
as by using hand sensors for security in their cars. So for promote their services manager of
organisation use strategic approach of STP model in modern marketing. This model is useful for
creating communication in marketing plans which helps marketing manager for prioritise
propositions and after this they have to develop and deliver relevant personalised plans for
engage within different audiences (Lee and et. al., 2018). This model focuses on effectiveness in
commercial and also most valuable segments in addition for develop marketing mix strategy for
each segment. Below is the description of STP model:
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Segmentation: This is first step in STP marketing model which have main goal for
create many customer segment which is based on certain traits and criteria which have been
consider. There are four major types of segmentation which are discussed below: Geographic: This segment mainly includes customers which are based on state, region,
province, country and so on. Demographic: In this segment, audiences are divide on based of gender, education,
occupation, age and so on. Behavioural: This mainly includes dividing the customers on bases of their interact with
business, interest, attitude etc.
 Psycho-graphic: In this it mainly includes customer segment as what are there hobbies,
activities, opinions, lifestyle etc.
In terms of Tesla Plc, when there is innovation of new product in their services such as
hand sensors in their cars. Managers of this organisation use behavioural segmentation tool for
attract potential customers for their products. As company deals in high range of cars so they
mostly attracts the interest, attitude of high class people.
Targeting: This is second step in STP model which have main motive to look on
segments which are taken by company and after this determine which of these segments are
helpful for generate desired conversions for company (Dent and White, 2018). There are many
types of targets which is discussed below: Size: In this there is consideration of segment which have future potential of growth. This
mainly includes size of project or plan which have future growth for their business. Profitability: In this sector, company may includes segments which are willing to spend
more money on product or services which is given by organisation. So manager have to
determine lifetime value for customers for each segment.
 Reachability: In this, company targets the customers which have direct reach of products
in each market segment. For this manager have to consider customer acquisition cost for
each market segment. When there is higher CAC leads to lower profitability.
In terms of Tesla Plc, with innovation in their cars they mainly targets high income size
of people which provide customers as high profitability. So for this manager of company targets
these individual with help many promotional tools for reach all income group in easiest manner.
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Positioning: This is last step of STP model, in this framework it allows to set the
products or services apart form their competition in eyes of target audience. As there are many
same organisation which are dealing in same business. There are three positioning factors which
helps in gaining competitive edge which are discussed below: Symbolic: This factor includes increase the self image, belongingness or ego of
customers. The main aim of this factor is to boost self image and esteem of company. Functional: In this factor, company have to solve issues of customer and provide them
with genuine benefits.
 Experimental: This factor focus on emotional connection of customers to their products,
brand or services.
In terms of respective organisation, managers mainly focus on symbolic positioning as
they provide many new innovation which boost their customers image and self esteem which
helps in increase the brand value of cars.
When Tesla Plc, innovate new technology in their cars as hand sensor facility in their
cars . This can help the organisation for meet the wants and needs to customers in productive
manner. There is a new product development strategy used by company. So for this there are
many important steps which need for plan into the new product development strategy which
helps in create or attract new potential customers. So first of all manager of organisation have to
define the new product in accurate manner which helps to running the business in effective
manner (Mullin, 2018). After description of product, manager have to identify the needs of
market, as when the hand sensor in car are included as in market segment competitive
organisation are there. So manager of company have to analyse the market by conducting the
proper research of market. After identify the market needs company have to establish time frame
as in accurate time the project have been implemented. So after all steps of new product
development strategy lastly manager have to identify key issues and approaches for their
customers which helps in attainment of organisation goals and attracts the customers for
company.
Company uses various techniques for enhance their relationship with customers which
helps to enhance sales when customer purchases the new innovation (Sport, 2018). There are
many steps for manager the customer relationship as by show the care about the needs and wants
by communicating and maintaining the good customer relationship which have proper
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communication with them. They have to maintain the customers experience by encompasses by
providing packaging, product and service in provide them trial in their cars.
Create a rationale for innovation in a new product and services.
Innovation is define as way to create new business. The principle actors in process of
innovation includes customers, suppliers and employees. This is done for as when there is a
requirement for change. In today's scenario, innovation is considered as essential element to
increase the market share for company in market segment. Innovation is mainly termed as
engined for growth for every enterprise (Dewsnap and et. al., 2020). In context of Tesla Plc, it
has innovate new technologies in their cars as hand sensor in lock security of car. This
innovation is important for company in different terms which is discussed below: Helps in growth of company: When company wants to innovate new terms in
organisation this will create a growth for company which leads achieve the goal of
organisation in effective manner. For growing the business innovation helps for company
for retaining the potential customers by focuses on needs and wants of customers by use
proper technology, customer relationship which creates a positive impact on value of
company. Innovation keep company relevant: As in terms of world these are constantly changing
so for this manager of every business organisation have to remain relevant and profitable
so for company have to adopt new technologies. As due to changes in model of car or
security in cars this will help company to build healthy relationship with their customer
by satisfy their demands and also customer have to deal with innovation in technologies
as they have to spend more money in terms for increase the productivity and profitability
factor of company (Assadinia and et. al., 2019).
 For differentiate themselves from other: When company starts innovation in their
services this will lead to make company different form competitors (Turkanik and
Johnson, 2020). As due to competition within the world company have to innovate that
type of product which leads to uniqueness in it. This will creates increase in brand image
of organisation and also helpful for customers to retain or experience the new technology.
When there is innovation this will create replacing or improving the business processes or
products which creates or increase the efficiency and productivity of company. As innovation is
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consider as creative process which leads to success the filtering those ideas, by recognising the
needs and wants of consumers.
The new design or innovation which is create by Tesla Plc, in terms of product or services for
satisfy customer or market needs by following way: Creative development: It is very important for every organisation to innovate nature, as
this will create a quality for organisation to growth by learning the outcomes which have
to be creative. This will make value for company as there is creation of business skill in
terms of managers. When their this type of skill is there it will create opportunities for
company which gives attract potential customers for company and also keeps firm with
current trends (Sheridan, 2019). Continuous improvement: When there is innovation in products it will creates
organisational sustainability by continuous improvements and rebranding the
organisation products and services. It have significant impact on organisation because it
helps in success of organisation and also maintain brand image for company. This will
create to growth of business skills by increase creative skill of employees of company. Reinforcement of brand: In organisational branding there is a leadership which is
considered as development of brand. As in terms of Tesla Plc, this process helps in
reveals the information which helps the managers for learn about many ways which
leads to innovation in their technologies. Making the different product: As by making the different product this will create a
brand image or success for business in terms of innovation. This will create a
productivity and profitability for organisation and customers also. In terms of customers
they get new technologies and unique services as they can enjoy the new services and
also creation of reputation in society (Neeli, 2020). Respond to trends and competition: By innovation company should responds to current
trends and competition in market segment. This will create opportunities for near future.
As Tesla Plc, is well established organisation which is successful in their future which is
due to this company creates new products or services which are according to new trends
and competition in market place (Riihikoski, 2018). Having unique selling point: Mainly buyers see innovation in technologies by
advertisement which creates value for organisation. When this innovation use in right
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manner it can create or maintain the unique selling price and also attracts new customers
and positive exposure for company. By this customers have willing power to purchase
the products services which have some excitement in them when they are purchasing any
product.
 Use of social media: As by including the social media which helps by innovative
campaigns which helps in managing, getting focused, motivating for the business. As
there in today business there is huge impact of globalisation, knowledge revolution and
technological so innovation is bringing added value which helps business widen in
employment base.
Specific target group within the framework of organisation.
Target group is also termed as target audience which define as readership of
advertisement, publication or other different messages which is catered for intended audience or
target people. In terms of marketing or advertising, it is a particular group of buyers or
consumers in predetermined target market which identifies the recipient and targets for a
particular messages or advertisement. Business have to target the market which is more specific
for certain the audience by certain messages (Ancillai, and et. al., 2019).
In terms of Tesla Plc, the target group of company have to attract people of high class as
the cars in which company is dealing are high class so the price of cars are also high so the main
target group of company is to retain or attract the potential customers within organisation.
There are marketing and sales strategies which are design by organisation for attract and
retaining the customers are discussed below:
Marketing strategies: These can be as a long term, forward looking approach and a
game plan of any business or organisation which have fundamental goal to attain a sustainable
competitive advantage by analysing the needs and wants of customers. These strategies mainly
lay outs the value propositions and target market which is provide on basis for examining the
best opportunities in market segment. There are various marketing strategies which is used by
Tesla Plc, for attract or retain the customers. Cause marketing: This type of marketing strategies relates to link of company to its
services & products which have social issue or cause. This type of strategy mainly deals
with profit seeks by increase in efficient manner and also provide social benefits in
according to corporate social responsibility which mainly includes active messages in
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terms of advertising. This strategy of marketing refers to subset of cause marketing which
occurs in cooperative efforts for profit and non profit organisation by mutual benefits. Relationship marketing: This marketing strategy mainly focuses on customer
satisfaction and retention in order to increase relationship with existing customers for
enhances the loyalty (Yao and et. al., 2019). This strategy is different from all other
strategies as it helps in recognises the long term values in form of customer relationship
and also extends communication beyond sales promotional messages and intrusive
advertising. By having growth in digital media such as mobile and internet platforms so
by this there is continuous evolvement of technology which is done by social
communication channels which helps in managing the customer’s relationship beyond the
geographic boundaries. Scarcity marketing: This strategy of marketing creates perception of shortage which
have main motive for entice the buyers for purchase the product out of fear as that
product they are not get in future terms (Armstrong and et. al., 2018). This strategy is
based on psychological principle as people wants product which is considered as difficult
to acquire. It mainly includes promotion, product, pricing and distribution strategies. This
strategy is also consider as a factor product pricing and designing in such areas like
collectibles and luxury goods.
 Undercover marketing: This marketing strategy also known as stealth marketing which
mainly includes marketing to buyers in such a way that they have not been realised as
they are being marketing also. It is a strategy which is consider as a broader tool in which
agents are poses the regular individual and also showcase the products who are unaware
of marketing push. In terms of this, Internet helps in create the number of additional
undercover opportunities for company. This leads to positive review for company as they
are share reviews on blogs, forums and so on.
In terms of Tesla Plc, managers uses relationship marketing strategy. As this strategy
helps in retention and satisfy consumers needs and wants as by innovation of new technologies
in their auto-mobiles.
Sales Strategies: These strategy is define as documented plan for selling and positioning
of the services or products for qualified buyers in such a way that creates different from their
competitors. These strategies are meant to offer clear guidance and objectives for sales
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organisation. It mainly includes sales processes, growth goals, competitive analysis, product
positioning and so on. There are many sales strategies which are used of Tesla Plc, are discussed
below:
 Know about the product: It is considered as when a person is selling a product as
knowing the product entirely. It is essential that salesperson have to spend some time for
study the new product which has been launched by company. This leads to increase in
sales volume and familiarise of all staff members and customers with the new product
which is has been launched by company (Cao and Alexander, 2018).
 Examine customers: The next part in sales strategy is to analyse or know the customers.
This mainly involves needs and wants of customers that is analyse by knowing current
trends in market segment. This can be beneficial for company to increase the brand image
of products in eyes of customers.
 Translation of features into benefits: This have been recognise as when company uses
any type of sales strategies they have to translate their products features into benefits. In
context of Tesla Plc, when they are innovate new product they have to show the features
to customers as they get the benefits from new innovation. This can leads to increase in
customer value for company.
 Get visual: This is a responsibility of every manager of organisation as when they are
launching a new product they have to get visual them. This means as product demo which
is very important for customer ‘conversion as many customers are not aware about how
to use product. So company have to demo their new services or products for retain
customers.
 Referral: Customer referral is consider as one of oldest method in sales strategy. About
more than 50% of customers are attracted from words of mouth (Syam and Sharma,
2018). This can be done by existing customers or family relatives and staff members.
This leads to serving and fulfil the needs & demands of customers which helps increase
the brand image of company.
 Bringing new but maintains existing product: This is very important as when company
is bring any new product thus is leads to increase in sales volume. But manger have to
maintain the brand image of existing products and services as this can leads to increase in
revenue for company.
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 Engaging communication: In this sales strategy, there must be engagement of
communication, which leads to increase the consumer for company. As when manager or
staff member of organisation communicate with customer this will create a positive
relationship between them. So this will leads to increase in brand image of company in
terms with consumers (Enyinda and et. al., 2020).
Role of data in improving relationship marketing.
Relationship marketing is define as form of marketing which is developed from direct
response by introducing the campaigns by company which emphasizes the customer retention
and satisfaction rather on transaction of sales. With growth of technology platform it will create
move collaboration and social communication channels for managing the relationship with
customer which will go beyond demographics and also collection of service data of customers. It
also extends as which involves inbound marketing, which is define as combination of
optimisation of search, public relations, application development and strategic content.
It also refers to arrangement in which both buyer and sellers have interest by more satisfy
exchange. Mainly this approach aims for transcend post purchase process of exchange among
customer in order for making contacts with customers for get rich contact with them. the main
focus of relationship marketing is maintain long term relationship with buyers by differentiate
other marketing techniques (Park, 2020).
In terms of Tesla Plc, it makes relationship by marketing as focuses on word of mouth,
referrals, advertising. In past the company mainly use simple techniques for encourage or attract
the customers which are helpful for increase the profitability factor for organisation. but now
there are many methods by which it can be examined as by inspecting the data this may improve
relationship marketing and also maintains customer relationship in efficient manner (Deepak
and Jeyakumar 2019).
Data is becoming very important element for marketing. In today scenario, gathering of
information about performance of company, as customers are even before. By this it will create
knowledge helps in improve the customer service, marketing and products. It is responsibility of
every manager as they have to make proper data about the customer needs and wants which
helps company for maintain a proper relationship with their customers. As many companies
collects data which are helpful for maintains or manages of customers relationship in proper
manner. This will create a brand image of company and increase in productivity and
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performance of organisation. Data can be collected by knowing behaviour of customers and their
preferences. There are many methods for building the relationship with customers which are
discussed below:
 Understand value of customers: According to this method manager have the
responsibility for examine the ways in which customers are showcase their values. So
they have to always listen to the demand of customers and also understands about the
demand and need of customer according to the current trends in market segment. So
manager have to maintain customer relationship by always considering their values
which may by listening their queries, feedback and also offer them good quality of
services which will helps them for increase in market share of company.
 By showcase genuine care: Manager have to show genuine care for their customers by
maintaining personal and friendly nature with them. so they have to find out the needs
and desires of buyers and in what manner they are engage on particular product.
 Adoption according to their pace: In this phase if customer wants to know more about
the product or service so manager have to retain according to the given situation. This
will create a healthy relationship with customers. For example when customer call in
organisation for any discussion of problem the so manager or company have to
understands the problem and also tell them for wait for some time (Chernev, 2018).
 Let brand be as guide: As Tesla Plc, is multinational company which mainly deals in
automotive sector, so if they are taking innovation in their products or services this will
create a brand image in terms of company. So this will generate a good brand image as
guiding customers in best and suitable manner.
 Model behaviour as they wants to examine: As customer visited in any organisation they
see in what manner superiors are treat with their subordinates so this will create a thought
in mind of customer. If company is discounting or cut out any type of cost so they are
supposed cut any amount from salary of their employees.
CONCLUSION
It has been concluded from above report as sales is a process in which there is selling of
goods and services in terms of achievement of customer satisfaction and exchange in terms of
money. The goods may be tangible or intangible but they main aim of sales is to satisfy
customers and also attainment of profit. On other hand, marketing have been define as action or
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process in which organisation are considering many activities for promote selling or buying
services and selling. Many tools and techniques are considering such as delivering, advertising
and so on. In addition report also covers segmentation, targeting and positioning for defining the
specific product which have rationale for innovation of new services and technology.
Furthermore, there is also framework of target groups considered by particular sales and
marketing strategy for satisfy demand and needs of customers at certain time. At last of this
product there is a role of relationship marketing which helps in maintaining or managing
customer expectations and services in excellence way.
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