Analysis of Segmentation, Targeting, and Positioning for M&S

This report delves into the significance of Segmentation, Targeting, and Positioning (STP) in a business context, emphasizing its role in enhancing market performance and brand positioning. It begins with an overview of the STP framework, highlighting market segmentation, targeting strategies, and positioning techniques. The report uses M&S, a multinational retailer, as a case study to illustrate how STP can be applied to attract a larger customer base, improve brand image, and boost sales. It explores the research questions, hypothesis, and rationale behind the study, along with a comprehensive literature review examining the theoretical underpinnings of STP. The methodology involves data collection and interpretation through questionnaires. The findings focus on the importance of segmentation, targeting, and positioning in improving business performance, with an analysis of the effective ways M&S can enhance its strategies. The report concludes with a discussion of results, limitations, and recommendations, providing valuable insights for businesses seeking to optimize their marketing approaches and achieve sustainable growth.

IMPORTANCE OF SEGMENTATION,
TARGETING AND POSITIONING IN A
BUSINESS
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Contents
Introduction......................................................................................................................................3
Overview of the tile.....................................................................................................................3
Background of an organisation....................................................................................................3
Research Questions......................................................................................................................3
Rational of the research...............................................................................................................4
Literature review..............................................................................................................................5
Explanation regarding the segmentation, targeting and positioning in business context? ?.......5
What is the major importance of segmentation, targeting and positioning in improving
business performance of M&S.?..................................................................................................6
What are the effective ways through which M&S can easily improve their business
performance?...............................................................................................................................8
Aims and objectives of the research................................................................................................9
Methodology..................................................................................................................................10
Data collection and interpretation..................................................................................................12
Designing questionnaire............................................................................................................12
Findings the outcomes...................................................................................................................13
Circulating the Questionnaire....................................................................................................13
Conclusion.....................................................................................................................................23
Results with limitations and recommendations.............................................................................24
REFERENCS.................................................................................................................................25
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Introduction
Overview of the tile
Segmentation, targeting and positioning is a broad framework, which summarizes as well
as simplifies the process of market segmentation. These are main parts of marketing and help an
organisation in promoting of its product and also improving their brand positioning in
marketplace. Market segmentation is dividing a market into different groups by means of
different requirements, characteristics or behaviour who might need separate marketing or
product mixes. Targeting is a strategy through which large number of audiences is divided into
small segment as it become easy for Organisation to target particular group of people. The
Company can target particular segment such as gender, income, religion, age and geographic
location. Positioning is a strategy when any business chooses one particular area and fulfils their
needs and requirements. Along with this, segmentation, targeting and positioning are useful and
beneficial for the growth and success of company in marketplace as well as in customer mind.
There are different advantages of segmentation, targeting and positioning such as better
matching of customer’s needs, retain more customers, better opportunity for growth, improves
product and services, build strong customer loyalty, cope with market changes, design
promotional strategy etc., (DIXIT, 2020). These are major advantages that will be beneficial for
an organisation in improvement of its marketing or business performance in successful manner.
Background of an organisation
For this dissertation, M&S is a chosen multinational retailer that specialise in selling of
home products, food products and clothing. Main product is clothes that are available for men,
women, teenagers and children’s in all size and better quality. Company was founded in 1884 by
Michael Marks and Thomas Spencer, and headquartered in London, England, United Kingdom.
Company used segmentation, targeting and positioning, with aim of increasing customer base,
improving their brand image, increasing sales and improving their marketing performance.
Research Questions
 Explanation regarding the segmentation, targeting and positioning in business context?
 What is the major importance of segmentation, targeting and positioning in improving
business performance of M&S?
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 What are the effective ways through which M&S can easily improve their business
performance?
Hypothesis
H1: Segmentation, targeting and positioning is an effective model of marketing used by an
organisation for attracting larger customer base.
H2: Attracting large number of customer’s is a main importance of segmentation, targeting and
positioning in improving business performance of M&S.
H3 Creating good competitive position is an effective way through which M&S can easily
improve their business performance
Rational of the research
Main rationale behind selection of current topic or research is to determining the issues of
marketing for an organisation. For overcoming this issue, segmentation, targeting and
positioning will be applied (Chaffey and Smith, 2017). This research is important for an
individual, organisation, society and many more. This research will be beneficial in increasing
the knowledge regarding the segmentation, targeting and positioning in improvement of
marketing performance of company. An individual basis, present investigation assist investigator
by improving its data collection, presentation, data analysis, literature review and time
management skill. With the help of these skills, researcher becomes able in completing the full
project systematically and successfully.
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Literature review
Literature review introduces to the main and systematic process of gathering data from
secondary sources i.e. books, articles, publication research, journals etc. These are main sources
that will be used for collecting secondary information regarding the segmentation, targeting and
positioning. Main purpose of literature review is to explore the research gap in existing topic.
Within a current dissertation main gap is the significance of segmentation, targeting and
positioning for improving business performance. In previous investigations, there were lots of
information available regarding the segmentation, targeting and positioning in business
performance, but there were lack of data regarding its effectiveness in improvement of marketing
performance. In order to fulfil this gap, research questions will be used that will be explained as
below:
Explanation regarding the segmentation, targeting and positioning in business context?
According to the Kuntonbutr (2019), Market segmentation is the process which has three
tools those are segmenting, targeting and positioning. The STP process helps to increase the sales
by targeting particular segment and positioning product to increase the brand image. It is the
process in which market is diversified which defines the characteristics and tendency of the
market. The process of segmenting, targeting and positioning are the chronological order of the
market segmentation.
Segmentation Segmenting comprises of the identification of the market to be segmented.
It involves identification, selection and application of the bases that will be used in segmentation
and it also involves the profile's development (Delanoy and Kasztelnik, 2020). Segmenting is a
complex process because it is tough to understand that in what variables or factors the market
should be divided. Here comes the need of social, economic and individual factors with the wide
geographic, demographic and behavioural variables. Basically we can define segmenting as the
process where market is divided in the groups through which business can get advantages. While
dividing they should not divide in very little parts because over diversification is also not good
and can make difficult to serve in very small markets (Sulistyadi, Wening, and Herawan, 2019).
The two approaches are considered while performing the segmentation, the first one is
known as approach of discovery and the second one is approach of analytic. The first approach is
future oriented and gives the idea of that if the investment made is worthwhile or not. The second
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approach is based on observing buying behaviours of that particular segment. Both approaches
can get benefits from the elements of the each other.
Targeting: This starts once segmenting is done. It is the follow on process of segmenting, in the
process of targeting the planning of the media is used to make the segment appealing. The
traditional targeting used print media for the advertising and the other different sources; it has
made the social presence active. In targeting it is decided that which market segment should be
targeted from the various alternatives (Doerin and Suresh, 2016). It gives the answers to some of
the questions like the segment which is selected has the potential customers which should be
targeted or not, would it be able to gain profits if this segment is converted. If the company is
equipped with the enough resources so that they can serve to that particular segment. It takes a
lot of time and hard work to target the particular segment of the potential customers. The
Company target different segment group as they offer clothes to different gender and delivers
various varieties of product to different segment.
Positioning: This is the last step among the segmenting and targeting. It is last stage where
the customers tell about the product or services of the company. It is that stage where customer’s
views matter the most about the company's product and services in comparison to the
competitor’s product. Ultimately customer’s views and their words of mouth help in building the
image of the product in the market and help to gain competitive advantage from the competitors
in the market (Dryglas and Salamaga, 2017). There are three types of positioning to gain or attain
the competitive advantage are functional positioning, experiential positioning and symbolic
positioning. The Company can use positioning map technique as it helps to find out existing
product and services position in Market and it becomes easy for them to select a place where
Organisation want to position their products and services. Functional positioning gives attention
to the customers’ needs and wants from the products or services. Symbolic positioning focuses
on those products or services which maintain or satisfy the self-esteem of the existing customers
as well as potential customers. Experiential positioning focuses on building emotional
connection with customers through their products and services. With all these three positioning
the company achieve competitive advantages from their competitors in market.
Main reason behind selection of STP model to M&S because it helps in identification of accurate
information about the segmentation, targeting and positioning of M&S. This is a useful model
when developing marketing communication plans that turn to facilitates marketers to prioritise
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propositions and then create as well as deliver personalised and accurate message to involve with
different audience (Natter and et. al., 2020). This model helps M&S in attraction of larger
customer base that result in accomplishment of long term goals and competitive advantages
within minimum time period.
According to the Moutinho (2021), segmentation and targeting and positioning all three are
based on each other and effective functioning of an organisation is also depending on same. This
brings an obligation over management that analyse the conditions perfectly and apply
accordingly so able to ascertain perfect results. In respect of M&S, segmentation is important as
per the current situation because have to deal with diverse competitive forces but this lowers
down the overall process of speedy growth because not possible to stimulate the market demands
in shorter period of time. The negative impact of same will be ascertained in the manner of
restricted targeting and positioning activities. Here, they have to focus over usage of alternative
approaches so able to deliver best outcomes to an organisation as per the current market needs.
What is the major importance of segmentation, targeting and positioning in improving business
performance of M&S.?
According to the Govender and Govender (2016), segmentation, targeting and positioning
are important part of business performance. as this will help an organisation in attraction of
larger customer base, improvement of their brand image etc. The importance of segmenting,
targeting and positioning in improving business performance will be explained as below:
Importance of segmentation in improving business performance-
Identification of opportunities in the market- By dividing the market in different
segments they can understand the needs and requirements of the each and every segment with
this came to know about what satisfies the customers at present and what their competitors are
offering to those segments (Kalam, 2020). Segments which are less satisfied with the current
offerings can be provided with better offerings which result in best use of this opportunity.
Designing of the product- segmentation of the market helps in designing the products according
to the preferences and needs of the targeted customers (Moutinho, 2021). The products which
have higher potential in the market should be designed and with these products the audience
should be targeted.
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In context of M&S, segmentation helps them in identifying the market opportunities and
also segmenting their clothing in men, women, teenagers and children’s. This will be essential
for them in improvement of its business as well as marketing performance.
Importance of targeting in improving business performance -
Right products- one of the advantages of targeting is that it helps in offering the right
product or services to the right segment in the market (Moon, Jalali, and Erevelles, 2021).
Through targeting the need and the requirement of customers are fulfilled through the products
and services which ultimately increase the profit of the business.
Advertisement- Business who does targeting is very particular about their advertisement
of the products and services (Yang and Sung, 2016). They reach right customer segments with
the right advertisement in right time. They convey the right message that attracts the targeted
audience. So it is important to choose right media to reach out the targeted customers.
In context of M&S, children’s, men, women and teenagers are target customers who have under
all age group and belong with middle and upper class (DIXIT, 2020). This will be beneficial for
them in enhancement of its business performance and growth.
Importance of positioning in improving business performance-
Creates good competitive position- Positioning helps in delivering products or services as
compared to the competitors. It helps in creating the image and brand value of the product in the
mind of the customers, which will benefit in achieving competitive advantages. And with this
business can stand out in the market from their competitors (Jewel and Kalam, 2020).
Effective decisions- Once the positioning strategies start aligning the communication
becomes clearer and stronger which help in connecting the business with the customers through
the products and services they are offering. The business can easily convey their products and
services benefits. And the main goal or aim of the business also gets satisfied that is maximum
sales and earning maximum profits (Kuntonbutr, 2019).
In context of M&S, they have strong brand positioning in market place and in customer’
mind. This will be beneficial for them in creating of good competitive position as well as in
making effective decision about business growth.
As per the opinion of Natter and et. al., (2020), it is clear from the above description that
large number of benefits associated with the exercise of STP to M&S. But, these can be
ascertained by an organisation when able to deliver the results perfectly on time. This is possible
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in the situation when merge the alternative approaches with each other for improvement of
functioning regarding all single deliverable of STP. This not only boosts the speed of working
but providing an opportunity to apply the other two approaches targeting and positioning
simultaneously with the process of segmentation. This will definitely aid in getting the positive
experiences and development of new strategy that work in all diverse situations. This provides
strength regarding outsourcing of ideas and resources so able to deliver effective results on time
along with getting positive outcomes on time. So, it is totally based on the situation that how an
organisation going to utilise their situations and resources in favour of an organisation. If, they
able to implement in positive manner then must ascertain positive outcomes otherwise vice
versa.
What are the effective ways through which M&S can easily improve their business performance?
According to the Piñeiro-Otero and Martínez-Rolán (2016), it is important for an
organisation to get better their business performance. There are some effective and essential
ways that would be essential for M&S in improvement of their business performance. These
ways will be explained as below:
Define the present and future: In order to improve business performance, M&S require
knowing the current performance and future potential of business by using techniques and
resources such as SWOT analysis, benchmarking analysis etc. These models helps business
organisation in improvement of its business performance by overcoming the weakness and
threats and enhancing strengths and opportunity (Saputra, 2020).
Develop a plan: This is an effective way for enhancing the business performance. For this,
M&S should develop an effective plan regarding reducing the issue of competitors. For this, they
must plan to provide segment their brand and target new customers. This turn to impact in
increasing business performance in positive manner (Lazarus and et. al, 2018).
Get the right people on the job: This is another way that will be essential and beneficial for
M&S in improving of their brand performance effectively and positively. This will be significant
for M&S in retaining and attracting of talent for longer time period that output in seceding over
competitors and improved business performance (Philip and et. al., 2019).
Therefore, above mentioned all these are main and essential ways for M&S in
enhancement of its business performance at national as well as international marketplace in
successful manner.
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According to the Chaffe and Smith (2017), STP is the effective strategy which is using by
the management of M&S for the purpose of developing business and ascertaining market
benefits. But, this individually not works perfectly and not able to deliver the similar number of
outcomes when it can be used with some other approach in merged manner. So, it is
responsibility over management that they have to made changes in their business approaches as
per the time and adjoin the practices whenever it requires. This not only help to protecting the
value of one practice but provide innovation overall nature regarding effective functioning of
transactions as per the current needs of market. So, this is the effective way that will definitely
help an organisation like M&S to gain success in market and come forward with new approaches
in market. This will bring new sense of working among the employees also enable them to be
risky in nature and try with their working approaches to get the best out of the limited resources.
The not improves the working of employees but providing an opportunity to develop the new
approach which is more strengthen with the stimulating or synergic effect of new approach. Use
of digitalisation in all the three approaches of STP is effective example of innovation from where
an organisation can achieve new heights. This not only improves the functioning but providing
an opportunity to apply the right technique on right time.
Aims and objectives of the research
Aim of the research:
Main aim of this research is “To identifying the significance of segmentation, targeting and
positioning in improvement of business performance. A study on M&S
Objectives of the research:
 To explore knowledge regarding the segmentation, targeting and positioning in business
context.
 To examine the importance of segmentation, targeting and positioning in improving
business performance of M&S.
 To determine the ways through which M&S can easily improve their business
performance.
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Methodology
Methodology is important and useful part of conducting dissertation because it facilitates
investigator in gathering and also evaluating the accurate type of data that relevant to the topic.
Main purpose of methodology is to help researcher in accomplishing the research aim and
objectives through methodology (Mutdoğan, 2020). There are different types of research
methodologies that will be suitable for carrying out present investigation in systematic manner.
These methodologies will be explained as below:
Research philosophy: This refers to the effective process of gathering, analysing and using
data about the specific field of study through positivism and interpretivisim philosophy. These
are two main types of philosophies of the research that are essential in data collection and
analysis. According to the existing topic of segmentation, targeting and positioning, positivism
philosophy is valuable that will be used by investigation (Shen and et. al., 2017). With the help
of this philosophy, researcher can easily gather and analysing data in form of quantitative as well
as minimum time, which is not possible with interpretivisim philosophy.
Research Approach: This is the methodology that is used for analysing the any type of
data through inductive and deductive approach. In this, inductive approach help investigator in
evaluation of qualitative data, while deductive approach helps them in analisation of quantitative
information. Therefore, in this dissertation, deductive approach will be applied for analysing the
quantitative data. Biggest reason behind selection of deductive approach is not takes maximum
time and also helps researcher in getting of valid outcomes as compare to inductive approach.
Research strategy: This is another type of methodology that is use for gathering
information regarding any field of study (Çınar, Yetimoğlu and Uğurlu, 2020). There are various
strategies such as action research, survey, experimental, case study and many more. Survey is a
selective strategy for current dissertation because it helps in getting of quantitative data within
minimum time and cost as well as resources.
Research choice: This is a methodology that is mainly divided in two types i.e. quantitative
and quantitative. Both types of methodology are effective but in this dissertation, quantitative
research choice will be used for collecting numerical information (Goldman and McCoy, 2020).
One of the main reasons behind using quantitative research choice is it helps investigator in
saving their time and cost as well as provides numerical data, which is not possible with
quantitative research choice.
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Sources of data collection: There are two important sources of data collection that are primary
and secondary. Both sources are useful within a dissertation that will be applied by researcher.
With the help of questionnaire, primary data will be gathered about the segmentation, targeting
and positioning. In order to collect secondary information, there are several sources that used for
literature review. These sources are books, peer-reviewed articles, journals etc. Thus, within a
current dissertation, primary and secondary sources of data collection are useful in achieving all
objectives successfully (Kalafatis and Cheston, 2020).
Sampling: This refers to the process used for selecting sample size from side to side
probability and non-probability sampling. For selecting sample size within a dissertation,
probability sampling will be applied for selecting 20 managers of M&S on random basis. Main
reason behind selection of probability sampling is it facilitate investigator in selection of larger
sample base in less period of time (Weisshaar and et. al., 2017). Non-probability sampling is not
valuable for researcher because it takes maximum time and not helps in selection of larger
sample size. 20 managers are selected to ask close-ended questions and these questions are asked
by forming questionnaire which are assisted through probability sampling.
Research instrument: There are different instruments of the research such as interview,
questionnaire, focus group, observation, modelling and many more. All these are major
instruments of the of gathering data, but for collecting information about the segmentation,
targeting and positioning, questionnaire will be applied because it assist in gathering of
numerical information in less time of period.
Ethical considerations: There are different principles of research ethics such as respect for
person, justice, conflict of interest, confidentiality etc. All these are major principles of research
ethics that must be following by researcher for completing full dissertation in ethical and
systematic manner.
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