Segmentation, Targeting, and Positioning: The Three Pillars of Marketing | TheoryTube [Video]

Welcome to Theory Tube. In this video, we’ll dissect the essence of creating a customer-driven marketing strategy, exploring the fundamental concepts of market segmentation, targeting, and positioning (STP) using clear definitions from Philip Kotler, along with engaging examples to deepen your understanding. So, let’s jump right in!

What is Market Segmentation
According to Philip Kotler, market segmentation is defined as “the process of dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors and who might require separate marketing strategies or mixes.” In simpler terms, it involves breaking down a heterogeneous market into smaller, homogeneous segments based on various criteria such as demographics, geography, psychographics, and behavior.
Example: Let’s consider the fashion industry, where a clothing brand may segment its market based on demographics, targeting different age groups with specific clothing lines. For instance, Abercrombie & Fitch targets teenagers with trendy apparel, while Ann Taylor focuses on professional attire for working adults.

Market Targeting
Kotler defines market targeting as “evaluating each market segment’s attractiveness and selecting one or more segments to enter.” It involves assessing the potential of each segment and choosing those where the company can deliver superior value and sustain it over time.
Example: Take the fast-food industry, where McDonald’s targets families with children by offering Happy Meals with toys, catering to the needs of both parents and kids. In contrast, Starbucks targets young adults and professionals seeking premium coffee and a cozy ambiance.

Market Positioning
According to Kotler, positioning is “arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers.” It entails differentiating the product and communicating its unique value proposition effectively to consumers.
Example: Consider the smartphone market, where Samsung positions its Galaxy series as premium devices with cutting-edge technology and sleek designs, appealing to tech-savvy consumers seeking innovation. Meanwhile, Nokia positions its phones as durable and reliable, targeting consumers prioritizing longevity and functionality.

By grasping these concepts of market segmentation, targeting, and positioning, you can gain a solid foundation in crafting effective marketing strategies. However, we plan to delve deeper into each component in future videos to offer more comprehensive insights.
Stay tuned as we delve deeper into each aspect in future videos, providing you with valuable insights to excel in your marketing endeavours. Don’t forget to like, share, and subscribe for more educational content. If you have any questions or topics you’d like us to cover, drop a comment below. Until next time, happy learning!
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