Business policy and strategy - Marketing: Segmentation - Targeting - Positioning

The STP (segmentation, targeting & positioning) model of marketing is outlined in this video. #alevelbusiness #businessrevision #aqabusiness #tutor2ubusiness #alevels #edexcelbusiness #businessalevel VIDEO CHAPTERS 0:00 Introduction 0:15 How Businesses Use Marketing to Create Value for Customers 1:23 Segmentation - Targeting - Positioning 1:37 What is Market Segmentation? 1:49 Main Categories of Market Segment 2:18 Benefits of Effective Market Segmentation 2:48 Potential Drawbacks of Market Segmentation 3:21 What is a Target Market? 3:34 Three Main Strategies for Targeting a Market 5:03 Market Positioning 5:57 The Marketing (Positioning) Map 6:54 Example of a Market (Positioning) Map 7:37 Positioning & Competitive Advantage 8:06 Possible Positioning Strategies VIDEO SUMMARY The video introduces the STP model in marketing, which stands for Segmentation, Targeting, and Positioning. STP is a widely used strategy to help businesses make decisions in developing their marketing strategies and creating value for customers. Market Segmentation: Market segmentation involves identifying different parts of the market where customers share similar needs and wants. Segments can vary in size and specificity, such as demographic, geographic, behavioral, or psychographic segmentation. The key benefit of market segmentation is to enable businesses to focus their marketing efforts more accurately and develop products tailored to specific customer segments. Targeting Strategies: There are three main targeting strategies: mass marketing, differentiated targeting, and niche or concentrated marketing. Mass marketing targets the entire market, while differentiated targeting focuses on specific segments with unique marketing plans for each. Niche or concentrated marketing concentrates efforts on a small, specialized part of the overall market to build a strong position and maximize returns. Market Positioning: Market positioning involves determining how to compete effectively in the target market. The value proposition, crucial to positioning, must be customer-centric, focusing on what customers perceive as valuable. A positioning map helps visualize different product positions in the market based on selected dimensions like quality and price. Positioning Strategies: Businesses can adopt various positioning strategies, such as offering more value for a lower price, providing good quality at a low price, or offering more features for the same price. The key is to understand how customers perceive value and create a competitive advantage through a compelling value proposition. Note: The video briefly introduces each element of the STP model, with a promise to delve deeper into market segmentation, targeting, and positioning in subsequent topic videos.