Strategic Marketing: Segmentation, Targeting, Positioning Analysis

This essay delves into the core concepts of segmentation, targeting, and positioning (STP) within strategic marketing, emphasizing their importance in competitive markets. It explores how these concepts are applied across diverse industries, including the beauty industry (exemplified by L'Oreal), the food industry (KFC), and the technology sector (Apple). The analysis covers the different segmentation strategies (geographic, demographic, and psychographic) employed by these companies to reach their target audiences effectively. The essay concludes with recommendations for leveraging STP in modern marketing strategies, highlighting the need for businesses to understand and cater to specific customer needs and preferences to achieve a competitive advantage. Desklib offers a wide range of resources, including similar essays and study tools, to aid students in their academic pursuits.

Running head: STRATEGIC MARKETING
STRATEGIC MARKETING
Name of the Student
Name of the University
Author Notes

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Table of Contents
1. Introduction............................................................................................................................2
2. Exploring the concept of Segmentation, Targeting and Positioning......................................2
2.1 Segmentation....................................................................................................................3
2.2 Targeting..........................................................................................................................3
2.3 Positioning........................................................................................................................4
3. Industries applying the concept of Segmentation, Targeting and Positioning.......................4
4. Companies applying the concept of Segmentation, Targeting and Positioning.....................6
5. Recommendation to apply Segmentation, Targeting and Positioning.................................11
6. Conclusion............................................................................................................................12
Reference..................................................................................................................................13

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1. Introduction
In the modern world, where there is ample competition among the people of the
various genres and even the companies producing a number of articles and goods, the scope
of being the best is always there. Every company when produces a good, makes sure to target
a sect of customers who become their potential customers in near or future. According to
Wedel and Kamakura (2012), the segmentation, targeting and positioning of the people and
the industries according to the market structure is one of the basis of the strategic marketing
which makes sure that all the industries as well as the companies which are concerned in this
place have their own set of customer range that help them to achieve their level of business
strategies (Wedel and Kamakura 2012). The essay focusses on the concepts of Segmentation,
Targeting and Positioning along with the various industries that apply the theory for their
marketing techniques. The essay also focusses on the companies that help to apply the
concept of segmentation, targeting and positioning to make sure that each of the companies
get their share of customers. At the end of the essay, generic recommendations are provided
for the application of the concepts in the modern marketing strategy.
2. Exploring the concept of Segmentation, Targeting and Positioning
The marketing technique of the companies applies a number of things in them to
make sure that the promotion of the products is done right and that it reaches the best of their
potential customers without a hassle. According to the views of Wilkinson (2013), the
concept of segmentation, targeting and positioning majorly focusses on that which means that
the work of the concepts is to make sure that the marketing plan is sorted for the companies
and that it reaches to the best of the customers who will buy their products. The whole
concept of market segmentation is a board structure that actually assesses the group of buyers
within the sphere of the market who are categorised under the headings of their taste and

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preference as well as the other variable tendencies that arte there determining the market
characteristics. In order to make the market segmentation of the whole process possible, the
concepts of segmentation, targeting and positioning plays a vital role (Weinstein and Cahill
2014).
2.1 Segmentation
The concept of segmentation is defined as the process in which the customers within a
market are identified and then selected according to their taste and preference. According to
Weinstein and Cahill (2014), the various applications and tools that are being used by the
sellers for the customers or the buyers are then applied to understand the type of products that
the customer will want to want. The concept of segmentation is generally defined as the way
of grouping people according to the variables of marketing. The basis of segmentation is
divided into geographic segmentation, demographic segmentation, and psychographic
segmentation. The concept of segmentation involves the following strategies in its
characteristics namely measurability, accessibility, sustainability and action ability. The part
of the segmentation in concerned sector is analysed either through the medium of analytic
approach and discovery approach.
The concept of segmentation involves the following strategies in its characteristics
namely measurability, accessibility, sustainability and action ability. According to Liu, Kiang
and Brusco (2012), the part of the segmentation in concerned sector is analysed either
through the medium of analytic approach and discovery approach. The analytic approach of
the segmentation policy is the more detailed and critical part while in the descriptive part
there is pure description of the element. The geographic segmentation targets the location in
which the business is operating, the demographic segmentation is based upon age, sex and
income level whereas the psychographic segmentation is for the standard of living and taste
and preference (Liu, Kiang and Brusco 2012).

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2.2 Targeting
Targeting is defined as the way in which the people or the customers are targeted for
the product and service which will yield most of the profit in the longer time span. The
process of targeting is defined as the way in which the specific group of people are targeted
for a particular product or service (Park and Jang 2014). The best for the business are
generally targeted and then given the product or service in the concerned time span.
Targeting is done for the people who can be the potential buyers for a particular product or
service. The targeting of the product states the area and the people whom the product or the
service is targeting along with the type of the people who are targeted for the same.
According to Park and Jang (2014), the best for the business are generally targeted and then
given the product or service in the concerned time span.
2.3 Positioning
According to Gunter and Furnham (2014), Positioning is defined as the extreme end
process of the three concepts true to the marketing need in every sense of the term. The
business oriented positioning is generally stated as the time in which the business should get
competitive advantage from the customers and assess its position and make the mark in the
minds of the consumers who are eager to buy or try the products or services. The positioning
part of the marketing strategy is to make sure that each of the product or service reaches to
the best of the people for better sales and business ultimately to more profit. The positioning
market is for the products on whom the concepts are positioned (Tanner and Raymond 2015).
The business oriented positioning is generally stated as the time in which the business should
get competitive advantage from the customers and assess its position and make the mark in
the minds of the consumers who are eager to buy or try the products or services.

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3. Industries applying the concept of Segmentation, Targeting and
Positioning
In the marketing of the various goods and services in the said case, the industry plays
a significant role in the wholesome matter which means that with each of the industries, there
is a specific segmentation, targeting and positioning portion that is there in the country.
According to Tanner and Raymond (2015), the whole industrial set up is dependent on the
segmentation, targeting and positioning which means that with each of the sector, the concept
differs big time which ultimately has led to this problem. The industries chosen in this case
are – Beauty Industry, Food Industry and Technological Industry.
The beauty industry is related to the production, use and sell of the problems that tend
to solve the beauty-related queries of the person. The beauty industry is overflowing with
number of things getting under one roof and even targeting the right of customers for the
concerned time span. There are a number of companies in the beauty sector which have
different kinds and segmentations of the customer for the prolonged period of time (Fong,
Fang and Luo 2015). The segmentation of the market is divided upon the three types which
are stated before and they are based upon mainly the female sex along with the youth oriented
public who required this in life.
In the beauty industry, a number of brands and other things that need to be done is to
make sure that each brand have their level of target audience who will be enable to buy their
products and sell them in the effective manner. The customers are segmented, targeted and
then promoted the products which make those customers their potential buyers.
The food industry is again one of the most target based industries as most of the
people in this sector have a choice of their own. According to Fong, Fang and Luo (2015),
due to the various types of the food items, it becomes way difficult for the industry analysis

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to categorise people and their food choices. This is evident that food industry has two
extremes namely the ones who like and who hate. Among them, it is also evident that food
industry is further subdivided into the genres of the same.
In addition, due to the presence of the various types of cuisines and food that are there
in the same tact, the concept of the segmentation, targeting and positioning holds an
important part in the case (Hooley, Piercy and Nicoulaud 2012). The targeting of the food
genre depends on the class and category of food that is being cooked and served to the people
who demand various other kinds of food in the market. In the food industry, the customers
are targeted and positioned after being segregated on the basis of choice and the type of food
preferred which make the concept one of the most important in the manner.
The third of the industry stated is the technical industry which has proper
segmentation and targeting along with positioning plan in this genre (Hooley, Piercy and
Nicoulaud 2012). The industry has been one of the most favourite sector for the
segmentation, targeting and positioning sector in the place.
There are a number of places in the technological sector that applies the concept of
segmentation, target and positioning to make sure that the various technical goals are being
catered to in the same plane. According to Proctor (2014), the different companies of the
sector have various types of audience and market segmentation to make sure that each of the
companies of the market have their own share of potential audience in the case.
4. Companies applying the concept of Segmentation, Targeting and
Positioning
The concept of segmentation, targeting and positioning is to be analysed based on the
different types of factors like choice, price and availability. In addition, the issues related to
the taste and preference, the society boundaries as well as the level of education also play a

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vital role in the case. The essay has demonstrated a number of companies in the genres that
implies the concepts of segmentation, targeting and positioning to make sure that every
audience club is being catered in the same place (Hong and Doz 2013). The company chosen
for beauty industry is L’Oreal which has both high end as well as affordable in the range, for
the food industry, KFC is chosen which is one of the most popular fast food brands of the
USA and for the technological sector, Apple is being chosen which is definitely the most
anticipated brand in terms of technology.
The various companies that is implying the concept of Segmentation, targeting and
positioning are analysed as follows which makes the companies have benefits through the
concept in some way of the other. In terms of the beauty industry as well as L’Oreal, the
concept holds a zillion value. L’Oreal is one of the major multinational companies in terms of
the manufacture of cosmetics as well as personal care products. The company has under its
umbrella both a number of high end brands like Lancôme and Keihl’s as well as affordable
brands like Maybelline and Garnier (Loreal.com 2018). The brand has made it a point to
make sure their potential customer base and that how can they expand their customer base
with the required amount of marketing and strategic placement.
The three types of segmentation of L’Oreal is stated as follows –
 Geographic Segmentation – The segmentation of the customers will be global.
 Demographic Segmentation – The youth will be targeted mainly the females who
have the income to invest in makeup.
 Psychographic Segmentation – The interest will be based upon the people who have
medium to high standard of living for the various products of L’Oreal belonging to
various price structure (Hong and Doz 2013).

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 Targeting – Based on the segmentation of the company, L’Oreal targets the youth
group of people who are interested in buying products according to the needs and
preferences. In addition, the people who are interested in buying are targeted by the
company for the better way of creating profit margin.
 Positioning – According to Loreal.com (2018), the positioning of L’Oreal is being
done in the manner that reaches the sect of people who want to have the product
namely the youth who are interested in beauty and cosmetic items. Loreal is
positioned in a good position amongst its competitors which is evident in the graph
below –
Figure – Positioning status of L’Oreal
(Source – Statista.com 2018)

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In terms of the food industry, the policy of segmentation holds prime value. Mostly
people segregate their choice and the industry holds special value for the people who have
varied choice in the food sector. The company chosen here is KFC which is one of the most
popular fast food chains of the market (Kfc.com 2018). The segmentation, targeting and
positioning status of KFC are as follows –
 Geographic Segmentation – The geographic segmentation of KFC is global
as it segments people all over the world.
 Demographic Segmentation – According to kfc.com (2018), the youth
generation along the age group of below 40 from both the genders is
segmented with a stable income which can help to flourish the business.
 Psychographic Segmentation – Both medium and high class people are
segmented who like to consume non-veg food especially chicken.
 Targeting – The targeting is done for the people who belong to the above
three genres and also to the fact that the people have a fair share for the food
they consume (Lilien, Rangaswamy and De Bruyn 2013).
 Positioning – The position of the brand KFC is fairly stable in the market with
their loyal customer base and stable brand value. The positioning map of KFC
is as follows –

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Figure – Positioning map of KFC
(Source – Statista.com 2018)
The third company that is considered here is Apple which is one of the highest end
technological brand available in the market (Apple.com 2018). The company has one of the
biggest market for technological things meant for the people who love technology. The
segmentation, targeting and position of Apple are as follows –
 Geographic Segmentation – The people segmented are from all over the world
especially the developed nations (Lilien, Rangaswamy and De Bruyn 2013).
 Demographic Segmentation – The male gender is mainly targeted from all age
groups who have the income to purchase a high end brand for their use.
 Psychographic Segmentation – The people from the higher class is being targeted
for the amount that is needed for Apple is not meant for the higher classes with a taste
for technological stuff.

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 Targeting – According to Boone and Kurtz (2013), based on the segmentation of the
market, the targeted customers are the ones that love technological goods and have the
income to purchase the same from the market.
 Positioning – The positioning of Apple is on the top as it gives tough competition to
the brands which are near to it both in quality and technique. The positioning map of
Apple is as follows –
Figure – Positioning map of Apple
(Source – Facts 2018)
5. Recommendation to apply Segmentation, Targeting and Positioning
There are a number of recommendations for the application of Segmentation,
Targeting and Positioning in the market which can be applied to the companies as well as to
the industries for the better business of the sense and also to make sure that the companies