Strategic Marketing Management Report: STP, Tactics, and Positioning

This report analyzes the STP (Segmentation, Targeting, and Positioning) options and their relationship to marketing tactics, providing a comprehensive overview of strategic marketing management. The report examines how segmentation, targeting, and positioning influence tactical decisions, with a specific focus on the IKEA brand. It provides a detailed breakdown of geographic, demographic, behavioral, and psychographic segmentation strategies. Furthermore, the report identifies primary, secondary, and tertiary target customer segments. A positioning map is used to compare IKEA with its competitors, highlighting the company's focus on high-quality products at comparatively low prices. The assignment emphasizes the link between marketing tactics and strategic positioning, illustrated with practical examples, demonstrating how tactical decisions are made when strategic plans are put into operation.

Running Head: STRATEGIC MARKETING MANAGEMENT
STRATEGIC MARKETING MANAGEMENT
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1STRATEGIC MARKETING MANAGEMENT
Segmentation
Geographic
The geographic segmentation of Ikea is mainly focused on the urban areas mostly in
Europe and the United States. However, currently Ikea is looking to expand its business in the
Asian and Australian market as well.
Demographic
People belonged to the age group of 22 to 60 or above are considered to be the potential
target customers of Ikea. There is no gender discrimination that the organisation follows. Both
male and female customers are marked as the core customers of Ikea. For the Billy Bookcase,
most of the customers are from bachelor to married couples. Most of them are associated with
the profession of students, employees or freelance professionals.
Behavioural
The customers are hard-core loyal and pursuing towards the cost-effective benefit that I
one of the most essential features of the Billy Bookcase. In fact, from the context of personality
of the customers it can be stated that they are looking for creative design and determined to
purchase product with benefits like using multipurpose bookshelf.
Psychographic
The customers are belonged to the middle and upper class with a lifestyle of explorer and
mainstreamer. Therefore, it is very crucial for Ikea to develop and promote the product properly
so that it will attract the customers properly.

2STRATEGIC MARKETING MANAGEMENT
Targeting
Primary target
The primary customers are belonged to the age group of 25-35 who are professional or
students and have a strong motive towards using the Billy Bookshelf. Moreover, they are from
middle class families so that it is easy to buy the product easily due to its low cost pricing. It is
important to note that the primary target customers are lived in the urban regions with the
perception of getting benefits from the bookshelf.
Secondary target
The secondary customers are from the age group of 35-60 who are very family person
and married. The purpose of purchasing the Billy Bookshelf for the secondary target customers
is to focus on performance of the product and its utility so that it will meet the expectation of the
customers. It is important to note that the pricing strategy is very important for the secondary
customers therefore the Billy Bookcase will help the customers to meet their needs properly.
Tertiary target
The tertiary customer segment is associated with the customers from the age group of 22
to 24. Those people are explorer and always interested to use different products. Henceforth, the
Billy Bookcase will provide them enough scope to buy the product as the product can be
customised and unique in design. In fact, the tertiary customers are basically students so that they
want to purchase cost effective products. Henceforth, the Billy Bookcase is the right utility
product for the tertiary target customers.

3STRATEGIC MARKETING MANAGEMENT
High price
Low quality High quality
Low price
Positioning
The positioning map projects that Ikea has a number of competitors in the international
market in the name of Tesco Plc., Wayfair and Walmart. However, Ikea is renowned for its high
quality product with comparatively low price. However, Tesco Plc also provides furniture with
low price but the quality of the product is not as premium as Ikea offers. On the other hand, the
quality of Wayfair products are not the same as Ikea and Walmart offers high price furniture.