Wow! Very true indeed, there is an exciting correlation! Read on to find out what I mean…………….you will like the article.
There are three exciting and quite fundamental concepts in marketing and these are SEGMENTATION, TARGETING & POSITIONING. STP for short. You see, there are 3 fundamental market selection strategies to select from in reaching out to markets.
1.Mass marketing/Undifferentiated marketing
The first strategy is taking your offer to everyone without due consideration to the unique differences in those people. The second strategy is looking at a few segments and tailoring your offering and marketing mix to those segments. The third one is looking at just one segment and exclusively focusing your resources and energies to that particular segment. So what is segmentation? It is simply breaking up a huge heterogeneous market into smaller homogeneous sub-and distinct groupings. The main reason underpinning the concept of segmentation is to appropriately deliver products and services in a way that best suits the specific needs of those particular sub-groupings. Targeting is a related concept which is basically the practice of now choosing which segment to serve. Positioning is the final related concept which is finding a way (by way of communication) through which your brand can be seen differently in the minds of your customers from competitors serving the same markets.
So you segment the market, target certain market/s then position yourself in those markets. Positioning is perceptual differentiation if I can put it that way. So when you select specific markets to serve, it means you are more focused on those markets and it significantly increases chances of them having a higher customer satisfaction. Which markets are you serving?