3 Important Elements Before Marketing to the Public, Segmentation, Targeting and Positioning

Executive Summary

This essay will describe the 3 important elements before marketing to the public, segmentation, targeting and positioning. You will find the marketing strategy with STP with example of Giordano, Starbucks, ParknShop & ThreeSixty.

Segmentation

Most of the products cannot satisfy the entire market, for example, clothes, we have clothes for kids, teens, women, men. This is the basic segmentation – age and gender. We can clearly divide them into more specific area, such as – clothes for women: we have clothes for parties, working suit, etc. Furthermore, we can divide to the style (interests / personalities), women who are cute, sweet, fashionable, tough or boyish…

Market segmentation is a concept in economics and marketing. A market segment is a sub-set of a market made up of people or organizations with one or more characteristics that cause them to demand similar product and/or services based on qualities of those products such as price or function.

A true market segment meets all of the following criteria: it is distinct from other segments (different segments have different needs), it is homogeneous within the segment (exhibits common needs); it responds similarly to a market stimulus, and it can be reached by a market intervention.

The term is also used when consumers with identical product and/or service needs are divided up into groups so they can be charged different amounts for the services. The people in a given segment are supposed to be similar in terms of criteria by which they are segmented and different from other segments in terms of these criteria. These can be broadly viewed as 'positive' and 'negative' applications of the same idea, splitting up the market into smaller groups, such as gender, price, interest.

Segmentation is important to marketers. It can increase the result by limited resources,