Segmentation, Targeting & Positioning

1463 Words Oct 10th, 2009 6 Pages
University of Zimbabwe Graduate School of Management *Marketing Ma*nagement Question: Kotler (1988) has stated that: “The heart of modern strategic marketing can be described as STP – segmenting, targeting and positioning.’’ Discuss this statement using appropriate examples.

Introduction Market segmentation By definition market segmentation is the division of a market into different groups of customers with similar needs. Or to express it in another way, market segmentation is the division of a mass market into identifiable and distinct groups or segments, and each has common characteristics and needs and displays similar response to marketing actions. ‘’In essence it is the process of dividing a varied and differing
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Men now pay particular attention to their hair in much the same way as woman. Thus target marketing should be done with extra care taking into account all factors that may have an effect on the organization’s profitability and the perception or position it wants to create in the market. POSITIONING Thus positioning is all about perception and is inextricably linked to segmentation. It cannot be defined until the market has been divided into unique segments, and target segments have been selected. As perception differs from person to person, so do the results of the positioning map. Positioning reflects the "place" a product occupies in a market or segment. A successful position has characteristics that are both differentiating and important to consumers and the characteristic may or may not reflect reality. A position is effectively built by communicating a consistent message to consumers about the product and where it fits into the market in terms of the features, performance, quality, conformance, durability, reliability, style and design — through advertising, brand name, and packaging and all the other elements of marketing mix. (Kotler, 1997, p. 301) For years OK Zimbabwe has constantly and consistently bombarded the minds of consumers’ with the message ‘….where your money buys you more.’ Thereby creating in the mind of the consumer that OK has the best prices and your dollar with OK can take you a long way.
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