Tuesday, September 19, 2006

Management Lite & Ezy 6 – Segmentation, Targeting & Positioning

Markets are not homogeneous. A company cannot serve all customers. It needs to identify which market segments it can serve effectively, and are profitable.

It Management Lite & Ezy 4, I described target marketing. An effective target marketing strategy involves the following steps:

  1. Identify and profile distinct groups of buyers who differ in their needs and preferences (market segmentation).
  2. Select one or more market segments to enter (market targeting).
  3. For each target segment, establish and communicate the distinctive benefit(s) of the company’s market offering (market positioning).

These three steps are sometimes known as STP.

Reference: Kotler & Keller, “Marketing Management”, 12th edition

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