While writing about STP strategy, which is related to marketing, there is a need to decipher the above-mentioned acronym. Thus, Ronald D. Michman (1991) states that “market segmentation was used as a strategy to satisfy some particular segment that would generate more profits for the firm than the use of mass marketing.” (p. 11) To prove the above-mentioned statement, let’s consider the following example. I would like to draw your attention to the cars of Hyundai models.
Thus, the customers who have various needs fly from one city to another one to buy a car they want. One should take into consideration that the tastes of the customers are different and marketing strategy, which includes segmentation, targeting, and positioning recognize that fact. A target market is considered to be the most important one. A target market determines the price of goods and services (for instance, cars of Hyundai models), the product itself and its place.
Thus, Swenson (1990) says that “A company using the lifestyle approach identifies the points of commonality for its target consumer segments and then affiliates with esteemed individuals, organizations, and activities that embody these points of commonality.” (p. 11) So, it is quite obvious that the target market is considered to be a prevailing strategy.
The automobile industry is recognized to be one of the most widespread industries which are to be represented as an example to analyze STP strategy. However, once the producers of Hyundai models failed to take into account the demand for the cars.
Moreover, there were some problems with the cars’ quality, and for this reason, the price of the cars was reduced. Nevertheless, in spite of the above-mentioned fact, the psychological segmentation of the target market is recognized to be at a high level. For instance, cars are produced by values and lifestyles of people who want to buy Hyundai models.
In consequence of the so-called ‘bad quality’ and price reducing, the cars of Hyundai models were bought up rather quickly. Every year the producers of Hyundai cars sell approximately 300,000 vehicles. One more point which is to be taken into consideration is related to the speculative psychology. Thus, one of the executive managers of Hyundai automaker affirmed that in spite of the fact that the cars are bought up in leaps and bounds, the company wouldn’t speculate anyway.
Thus, the marketing strategy which concerns with a market target is recognized to be successful, as according to special investigations the company which produces the cars of Hyundai models will become one of the world’s top sellers. From the conclusion above, it is obvious that targeting strategy is a dominant one, and positioning as well as segmentation is recognized to be the secondary issue.
However, one should keep in mind that a target market impacts on the other add-ins, which play an important role in marketing strategy and influence persons’ choice. In other words, STP marketing strategy is to be considered as a whole system which elements are inseparably linked with each other. The cars of Mercedes/Lexus models do not take the leading position anymore.
Thus, it is a marketing strategy STP which determines the winner of the automobile strategy. It is mostly STP strategy which impacts on people’s ability to make a rational choice.
Reference List
Michman, R. D. (1991). Lifestyle Market Segmentation. New York: Praeger. Web.
Swenson, C. A. (1990). Selling to a Segmented Market: The Lifestyle Approach. New York: Quorum Books. Web.