Business Segmentation and Market Targeting

1563 Words Feb 17th, 2018 6 Pages
But they can divide such markets into groups of customers or segments with distinct needs and wants then it needs to identify which market segments it can serve effectively. This decision requires a keen understanding of customer behaviour and careful strategic develop a best marketing plan one should need to understand what makes each segments unique and different. STP or segmentation, targeting and positioning is a marketing tool which helps an organisation to differentiate, attract, maintain and grow customers for their particular products. In order to be a profitable and productive an organisation should find out their target customer market so segmentation, targeting and positioning are three main issues to consider when determining any target market.
Market segmentation involves grouping various customers into segments who share similar sets of needs and wants, each segment will respond to a different marketing mix strategy through market segmentation a company can more effectively design, price, communicate and deliver its product or services. Some different ways a company can segment its market include the following:
• Geographic segmentation divides the market into different geographical units such as countries, states, regions, cities or neighbourhoods that the customer group resides.
• Demographics segmentation which focuses on the characteristics of the customer.…