0602

Problem

Describe how segmentation, targeting, and positioning are related to one another.

Step-by-step solution

Show all steps

Step 1/2

Segmentation, targeting, and positioning (STP) are three interrelated components of a successful marketing strategy. They help a business identify, reach, and retain its desired customer segments.

Step 2/2

Relation between segmentation, targeting and positioning is given below:

1. Segmentation: It divides a market into small groups of customers with the similar set of interests and needs.

2. Targeting: It helps to evaluate each market segment's attractiveness individually and select one or more than one segments to target with a marketing mix.

3. Positioning: It is the process of creating a unique and compelling image of a brand in the minds of the target customers. It also helps in differentiating the brand from competitors.

The output of segmentation is a list of market segments that the company can target. From this list, the company then evaluates each segment and selects the most attractive segment or segments to target. Finally, the company positions its products or services in a way that differentiates them from competitors and appeals to the targeted customers.

STP is a crucial step in creating a successful marketing strategy. It helps a business to focus its resources on the most promising segments, and to differentiate itself from competitors in the minds of target customers. Effective STP can result in increased sales, market share, and customer loyalty.