Marketing Of A Target Market

1917 WordsDec 11, 20158 Pages
2. Literature Review Philip Kotler argues that the key to successful marketing is the STP strategy - that is, segmentation, targeting and positioning (Kotler, 1997). Amongst many other marketers, it has been realised that in order to successfully meet customers’ demands, it is necessary to recognise that not all of the target market for a certain product are alike. Therefore in order to effectively meet the target markets needs it is essential to segment the market. 2.1. Segmentation Identifying various segments of a target market can be achieved by examining geographic, demographic, psychographic and behavioural differences among consumers. Segmentation is a methodological process of dividing a market into distinct homogenous groups that might require separate experiences or marketing service mixes (Venugopal and Baets 1994) (Sulekha Goyat. 2011). There are numerous ways how market segments can be identified (Mazanec, 1997; Wedel & Kamakura, 1998). The process by which segmentation takes place consists of three main elements: segmentation, targeting and positioning (Kotler, 1998). Figure 1 gives an overview of these elements Figure 1 Geographic segmentation The geographic segmentation divides the target customers into segments based on geographical areas such as nations, regions, cities and neighbourhood types, it represents one of the oldest methods of segmentation, and additionally it is one of the most
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