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“Olay Total Effect & Pond’s Age Miracle creams have been recently launched. Explain the STP (Segmentation Target & Positioning) used by them.
Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.
Marketing begins with the human needs and wants. Needs are feeling of deprivation of some satisfaction. People need food, air, water, clothing and shelter to survive. Wants are desires for satisfiers of need.
MARKETING SEGMENTATION, TARGET AND POSITIONING (STP)
STP often used before marketing programs is planned. STP is related with market research and marketing research. STP uses information about current market size, market shares, concentration of customer base for particular products, potential customers, customer’s purchase decision process that gathered from market and marketing research to find out kinds of consumers with different needs, different characteristics, and etc (this is known as Segmentation). For example in the auto market there are consumers that need speed and performance, there are consumers that need safety and luxurious, there are consumers that need an economical auto, there are consumers that need the combination of some needs that have been described, there are consumers that want to have their own imagination car or modified car special for themselves, and etc. In the auto market there are consumers with high, medium, and low purchasing power too. There are some variables that often used to segment various consumers. Demographic segmentation is consumers segmentation based on: income, gender, marital status, education, etc while psychographic or behavioral segmentation is consumers segmentation based on lifestyles, opinions and attitudes, degree of loyalty, consumption occasions, usage consumption, and benefits sought.
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After finding out kinds of consumers the next thing to do is deciding to target a kind or some kinds of consumers a segment or few segments of consumers (this is known as Targeting). There are 3 considerations in choosing target segment:
1. How well existing segment treated by competitors,
2. How large the market size of the segment is, how good it’s potential, and how easy and how big it will grow in the future ?,
3.Do the company have enough strength to appeal one or more group of segment?
The next step in STP is positioning the product or the company to appeal target segment. There are 3 strategies for it: undifferentiated, concentrated, and differentiated strategy. In the undifferentiated strategy all consumers is treated the same or a product for all customers, for example is a company supply same aluminum commodity to various household tools producers. In the concentrated strategy a product is positioned to serve customers’ specific needs, for example Volvo is positioned as safety and luxurious car to serve a high-class target segment that has high consideration on safety, or Southwest Airlines is positioned as an airways that makes people fly to serve price sensitive passengers that needs to fly in a low price. In the differentiated strategy a product is positioned differently for each target segment, for example nowadays many airlines provide economy and business class for their customers.
OBJECTIVES OF STUDY
To learn and understand about the implications of concepts of marketing in practical cases.
To get aware how organizations scan the market using various concepts.
To understand the application of the concept of Marketing segmentation, targeting and positioning
SOLUTION AND FINDINGS
that is on the basis: ·Age – Above 35
Income Level – 30,000 and above·
Gender – Females
Social status – High middle class
Market Targeting: -Olay have used “Segmented marketing” while targeting their customers. There target markets according to the demographics which are are:
Middle aged women of more than 35 years age of higher middle class. As their product removes wrinkles that are formed on the skin of middle aged women. Also geographically there target customers are, People residing in city initially they are targeting customers in India.
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Positioning: -A positioning built on meaningful differences, supported by appropriate strategy and implementation can help the company in building competitive advantage. Olay positioning the product in the minds of people by the slogan and logo that reflects youth, as it makes the skin wrinkle free like the skin of young people.
PONDS AGE MIRACLE (STP)
that is on the basis: · Age – Above 35
Income Level – 20,000 and above
Gender – Females·
Social status – lower middle class
Market Targeting: – ponds also have used “Segmented marketing” while targeting their customers there target markets according to the demographics which are:
Middle aged women of more than 35 years age of lower middle class. As their product removes wrinkles that are formed on the skin of middle aged women. Also geographically there target customers are, People residing in city initially they are targeting customers in India.
Positioning: The marketing slogan of this company is “Add Vitality to Life.”
The mission of this company is high quality product with low price. So, they have done it accordingly by keeping it for lower middle class.
Market segmentation targeting are positioning are very useful in marketing for a products success. STP is related with market research and marketing research. STP uses information about current market size, market shares, concentration of customer base for particular products, potential customers, and customer’s purchase decision process that gathered from market and marketing research for making the product successful.
Here we have studied two companies i.e. OLAY and PONDS with same kind of product but each having different STP for them.
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