Week 2 Assignment

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American Public University *

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307

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Marketing

Date

Jan 9, 2024

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docx

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Uploaded by AgentTapir3342

The segmentation, targeting, and positioning marketing model, also known as the STP Marketing Model, is a way to identify the most valuable market within the consumers, and target the products or services to the identified market. The model is to segment the market, target the best customers, and position the offering. This allows the company to tailor their products and marketing to directly align with their customers. Market segmentation is identifying groups of consumers based on their common needs (Shank & Lyberger, 2015). Market segmentation is a useful tool in marketing new products because rather than treating all consumers the same, they can identify unique segments of consumers that will be interested in the product they are trying to market. Markets can be segmented by behavioral differences, demographic differences, psychographic differences, and geographical differences. It is important to divide the market into segments that have customers with a clear need for the product and segments that can be easily identified. An example of STP could be a travel agency trying to identify their customers (Mind Tools Content Team, n.d.). Segmenting a market would require the travel agency to split their customers into three segments – segment A: young couples looking for affordable trips, segment B: middle class families looking for somewhere safe and easy to travel with children, and segment C: retirees who are willing to spend a good amount of money on a luxury trip. Targeting in marketing is using the segments created within the market, and choosing the segment that will allow an organization to attain its marketing goals (Shank & Lyberger, 2015) most efficiently and effectively. Using target markets allows companies to understand their customers and use marketing strategies to best reach the targeted customers. According to Shank & Lyberger (2015), factors to consider when evaluating a target market are the size of the market, including predicted growth, accessibility to the target market, behavioral variation, and a measurable target market. The ability to measure a target market would be done using specific criteria: identifiable differences, accessibility to

customers, sustainable resources, unique needs of customers, and durability of a segment. Using the travel agency example, targeting the customers would be done by breaking down the revenue of each segment created in the segmenting phase. For example, segment A has profits of $10,000,500. Segment B has profits of $5,700,000. Segment C has profits of $2,850,000. The travel agency would then decide to target segment A after this research because it has a large enough sample size and the profits of the segment. Lastly, market positioning consists of assuring a logical relationship between the marketing strategy, positioning, and the market targeted ( Fyall, et. Al., 2019). Market positioning shapes the way consumers perceive the service or product. Market positioning allows companies to determine their strategies to be competitive within the consumer market by creating an effective and accessible marketing plan. Using the travel agency example, the selected consumers were Segment A, which was young couples looking for affordable trips. Since social media has become such a large platform with the desired consumers, the travel agency created a post that asked followers to send in the best places they have been to, and where they would want to go next. The travel agency chose a winner based off of the coolest pictures and places to go next, and the winner gets an all-inclusive trip. Since so many people were tagged, this contest spread, and many people sent submissions. This allowed the travel agency to send more vacation destinations and increase their consumer base. If the travel agency wanted to target the retirees’ segment, they would maybe send an advertisement through mail, Facebook, or even in person marketing. Marketing varies heavily depending on the consumer group, so it is important to understand your target. Another example of using the STP Marketing Model could be trying to identify a target market for a beachfront store. Living in Florida, and at the beach for most of my life, has given me a huge insight into the marketing these stores use to target their customers. The stores typically sell clothing, some

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