Marketing Report: Segmentation, Targeting, and Positioning Analysis

This report provides a detailed analysis of segmentation, targeting, and positioning (STP) within marketing, using examples of iSense smartphones, Dunkin' Donuts, and the take-home ice cream market. The report begins by defining STP, emphasizing its role in effective marketing strategies. It then examines how iSense can segment its market based on density, income, and age, with a recommendation to target the 12-50 age group. The report also analyzes Dunkin' Donuts' positioning strategies, including its marketing campaigns, its adaptation to changing market trends, and its success in the coffee and breakfast market. Finally, the report discusses the positioning and branding strategies for the take-home ice cream market, highlighting the importance of segmentation, product specifications, and high-quality service in creating a strong brand image. The conclusion summarizes the importance of STP in business success and the role of effective positioning in gaining customer confidence and brand profits. This report is a valuable resource for students studying marketing and those seeking to understand the application of STP principles.

Running Head: Marketing
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Table of Contents
Introduction......................................................................................................................................1
MT1: Targeting the Right Market Segments...................................................................................1
MT2: Positioning.............................................................................................................................3
MT3: Positioning and Branding......................................................................................................4
Conclusion.......................................................................................................................................5
References........................................................................................................................................6

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Introduction
Segmentation, targeting, and positioning plays an effective role in marketing functions of an
organization. In this paper, we will discuss different discussion topic on targeting, segmentation,
and positioning. They give us significant knowledge about how different organizations use them
in their day to day functions. Segmentation is considered as a process of dividing a wide business
market into different groups of people. It is done on the basis of some type of shared
characteristics. The main purpose of an organization behind segmentation is to develop
marketing strategies that fulfill the different needs and wants of a particular segment (Sharma,
2013). On the other hand, targeting is the process of target one or more segments. Choice of
target market depends on different business factors such as resources, product features, etc. In
addition, positioning is the process of implementing our targeting. The main motive of an
organization behind positioning is to locate the brands in the mind of consumers. This will be
helpful in creating competitive advantage in the target market.
MT1: Targeting the Right Market Segments
Chosen product for this discussion is iSense. It is a smartphone with a combination of different
features such as an interface that senses voice commands, and hand gestures to function from as
far as eight inches away. The iSense manufacturing organization can segment its market in
following segments:
 iSense manufacturing organization can segment its potential market on the basis of
Density. Density segment includes Urban, rural, and suburban areas (Cross, 2015).
Segmentation on the basis of density gives an opportunity to iSense making an
organization to serve a particular market as per its capabilities.

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 Another suggested segment area to iSense manufacturing organization is income. On the
basis of income group segmentation the organization can maintain its quality, price, and
demand for its products. Income segmentation helps the organization to satisfy people
belongs from a particular income class.
 On the other hand, the organization can segment its market on the basis of demographic
age of individuals (Diamantopoulos, 2014). By doing this, the organization can
manufacture goods by considering their requirements. This helps the organization in
establishing itself in the eyes of its segmented market.
Segmentation Variable for Consumer markets of iSense
Demographic Age Under 6, 6-11, 12-17, 18-34, 35-49, 50-64,
64+
Income Under $10,000; $10,000-$15,000; $15,000-
$20,000; $20,000-$30,000; $30,000-$50,000;
$50,000 -$100,000; $100,000 +
Density Rural, Urban, Suburban
According to me, the organization should target the demographic age group of people. In this age
group, iSense manufacturing organization should target 12-50 age groups, people. It is because
the smart phone is highly demanded by teenagers and youngsters. Usage of the smart phone
gives them largest satisfaction. It becomes their habit. By doing this, the organization can
successfully enhance its potential customers which ultimately brings various benefits for the
organization. On the other hand, the iSense manufacturing organization can segment its market
on the basis of income. Segmentation on the basis of income help the organization in fixing

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existing prices of its products and services (Bruwer, 2017). On the other hand, it can also satisfy
a large number of consumers by giving the product at reasonable cost required by individuals.
On the basis of all such activities, the organization can successfully target particular segment for
its product offering. This ultimately improves the product offering and consumer service of the
organization.
MT2: Positioning
Dunkin Donut recognized by everyone nowadays. He is a person who has been successfully
selling junk food for years. Dunkin Donut receives success in his potential market not only on
the basis of its product offerings and quality. But, he gains success on the basis of its attractive
marketing strategies. During 1982, he starts a marketing campaign which known as “It’s Worth
the Trip” (Hollensen, 2015). This campaign is featured as per Michael Vale as the iconic Fred
the Baker. This marketing campaign of Dunking Donut gives him huge success in its target
market. The popular catchphrase of "Time to Make the Doughnuts" was heard during 1997 in
commercials of Dunkin Donuts. On the other hand, during 1950, he expands his business on a
large scale. He has grown up from a single coffee shop to the world's largest coffee and baked
goods chains. He has approximate 11,200 restaurants in more than 35 countries. Dunkin Donut
offered more than fifty varieties of doughnuts and serves approximate two million customers per
day globally.
Apart from this great success, they decided to reposition themselves in their target market. This
was done through changing its focus from coffee to their donuts. This decision was made
following the big McDonalds Controversy. On the other hand, McDonald's also faced lots of
problem in their life such as lawsuits against selling unhealthy food although they have a

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healthier food rather than other restaurants. In that situation, DD realize that market trends and
preferences of people change and being associated as "unhealthy" they cannot survive its brand
for a long time.
By considering that situation in mind, he launches its other marketing campaign. This campaign
of McDonald’s known as “America Runs on Dunkin” (Breznitz, 2013). With the help of this
marketing campaign, Dunking Donuts is selling the idea that coffee is fuel, and that’s markedly
different from coffee offered by Starbucks-drinking coffee as a lifestyle. McDonald's
repositioned itself to bit the strategies of the Starbucks which is the nearest competitor of
McDonald's. By looking the current debt of the DD, one can easily say that the organization is
not earning success in its market, but its breakfast menu and coffee have successfully left Krispy
Kreme of the other organization in the dust.
From this, it can be said that the most successful and effective marketing strategy has been the
selling of its coffee to consumers to brew in their homes. During 2006, DD was known as the
official JetBlue in-flight coffee. On the other hand, during 2007, a deal of the organization with
Proctor and Gamble made its coffee available in club stores and supermarkets also (Zeriti, 2014).
Apart of this, the organization also enters into the partnership contract with Hess Corporation.
This was done to have Dunkin Donuts in non-traditional foodservice locations.
MT3: Positioning and Branding
Positioning contains claiming a reputation or position in several markets or a particular market
for an organization, service or product (Baines, 2014). Take-home ice cream market mainly
positioned itself in local, national, or rural areas. On the other hand, some marketers of the take-
home ice cream market segment potential market on the basis of gender, age, or income. It

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mainly served large parts of its ice cream to young children or kids. Perfect segmentation of its
target market helps take-home ice cream in creating its product specifications and design to
cover a large market share of its potential market. Perfect segmentation in its available market
helps take-home ice cream in enhancing its sale and creates a competitive advantage over its
competitors (Kirmani, 2017).
On the other hand, the brand is considered as a personality of a particular organization. Brand
plays an important role in entails the services of an organization. It can be suggested to the take-
home ice cream that it should focus more on offering high-quality services to its target
customers. With this the organization able to create its brand image in the eyes of its customers
and can successfully change the perception of consumers regarding its product offerings. This
can do by following the concept of the marketing mix (Ogunoye, 2016). With the help of
marketing mix concept, take-home ice cream can undertake its product promotion by considering
distribution and pricing elements. This will enhance the market reputation of organization which
ultimately improves its market share and brings growth for future.
Conclusion
After studying all this, it can be said that segmentation, targeting, and positioning play an
important role in the success of a business organization. Perfect segmentation of available market
gives an opportunity to business organization to select best target market for its product offerings
(Jafari, 2014). By serving the target market in an effective manner, an organization can uplift
itself and can survive for a long time. In addition, positioning also brings an opportunity for an
organization to survive in the market for a long time. Thus, it can be said that perfect positioning

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in the eyes of customers able to gain customer confidence which brings brand profits for the
organization.

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References
Sharma, A., & Lambert, D. M. (2013). Segmentation of markets based on customer
service. International Journal of Physical Distribution & Logistics Management.
Cross, J. C., Belich, T. J., & Rudelius, W. (2015). How marketing managers use market
segmentation: an exploratory study. In Proceedings of the 1990 Academy of Marketing Science
(AMS) Annual Conference (pp. 531-536). Springer International Publishing.
Diamantopoulos, A., Ring, A., Schlegelmilch, B. B., & Doberer, E. (2014). Drivers of export
segmentation effectiveness and their impact on export performance. Journal of International
Marketing, 22(1), 39-61.
Bruwer, J., Roediger, B., & Herbst, F. (2017). Domain-specific market segmentation: a wine-
related lifestyle (WRL) approach. Asia Pacific Journal of Marketing and Logistics, 29(1).
Hollensen, S. (2015). Marketing management: A relationship approach. Pearson Education.
Breznitz, D., & Palermo, V. (2013). A strategic advantage with behavioral targeting? How can
(and what) firms benefit from personal data-based online marketing strategies. In Proceedings of
the 35th DRUID Celebration Conference.
Zeriti, A., Robson, M. J., Spyropoulou, S., & Leonidou, C. N. (2014). Sustainable export
marketing strategy fit and performance. Journal of International Marketing, 22(4), 44-66.
Baines, P., Crawford, I., O’Shaughnessy, N., Worcester, R., & Mortimore, R. (2014). Positioning
in political marketing: How semiotic analysis adds value to traditional survey
approaches. Journal of Marketing Management, 30(1-2), 172-200.

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Kirmani, A., Hamilton, R. W., Thompson, D. V., & Lantzy, S. (2017). Doing Well Versus Doing
Good: The Differential Effect of Underdog Positioning on Moral and Competent Service
Providers. Journal of Marketing, 81(1), 103-117.
Ogunoye, O. F., Kane, K. J., & McEachern, M. G. (2016). Exploring Place Branding in Social
Enterprise Places.
Jafari, A. (2014). Islamic branding and marketing: creating a global Islamic business. Journal of
Marketing Management, 30(13-14), 1510-1513.