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The best marketing planning method is based on the mission that guides business operations. It leads to the identification of needed markets, and the structuring of precise marketing strategies and objectives for each commodity that an organization intends to present to customers. Given this, it becomes the role of the organization to create value and delivery process.
The segmentation, targeting, positioning (STP3) strategy is the core of strategic marketing. This technique enables marketers to narrow their focus and effectively communicate the preferred qualities of a commodity to intended customers. A captivating marketing slogan is, therefore, the fruit of STP, coined to entice consumers into purchasing a commodity (Quinn, 2009).
According to Tuma, Decker, and Scholz (2011), segmentation of the market is an adaptive business promotion tactic. It involves the division of the customer base to pick on one or more segments of the market for target advertisements. This will enable marketers to develop particular marketing strategies that address specific market needs. Additionally, the strategy of market segmentation enables an organization to expand its competitive scope and returns.
Segments may be defined by geographic, social structure, or psychographic aspects of the market. For example, commodities that college students prefer to buy may not be similar to those of youthful professionals.
Young parents may be interested in different commodities than their age mates buying their personal effects (Pirinsky, & Wang, 2011). The market division may include the identification of divisions for which an organization would be more appropriate to supply by enjoying a competitive edge against market rivals, such as dropping the adaptation costs.
Targeting involves the making of decisions based on the right market segments. The practice enables organizations to focus their marketing plan on the right group.
For example, an organization may spot a whole group of young adults in a market segment; however, the company would probably gain more returns on its marketing efforts if the resources were channeled to a more precise group, which is more interested in a product or service being offered: for instance, marketing new brad of nappies to younger adults with children would be more positive than marketing the same item to all adults. Each segment develops different perceptions of a market commodity (Tuma, Decker, & Scholz, 2011).
Quinn (2009) suggests positioning involves crafting uniqueness of a commodity to occupy the consumer’s mind. The principle of positioning, generally, revolves around establishing a mental pointer or product shortcut in the consumer’s mind. Positioning enables customers to make purchases of the same brand of product because they are used to the adequate nature of the commodity, during previous usage (Tuma, Decker, & Scholz, 2011).
This strategy saves the customers the daunting task of researching to determine the better option, hence enables them to keep going for one brand. Consumers build heuristics for opting for products that please them, so marketers are forced to communicate product qualities that can match the customer’s emotional needs.
A well-structured positioning strategy rings in the customer’s mind, thereby enabling him or her to go for the good being advertised instead of the ones that they do not view to be popular with them. Usually, the principle behind positioning revolves around the need to use the simplest terms possible in marketing initiatives, to enhance easy remembrance by customers
Pirinsky, C.A., & Wang, Q. (2011). Market Segmentation and the Cost of Capital in a Domestic Market: Evidence from Municipal Bonds. Financial Management, 40(2), 455-458.
Quinn, L. (2009). Market segmentation in managerial practice: a qualitative examination. Journal of Marketing Management, 25(3/4), 253-272.
Tuma, M.N., Decker, R., & Scholz, S.W. (2011). A survey of the challenges and pitfalls of cluster analysis application in market segmentation. International Journal of Market Research, 53(3), 391-414.