S T P

From day one of learning about segmentation, targeting and positioning people have been taught to think of the marketplace as an orange. Different sections are different audiences and potential customers so products must be promoted to suit each desired segment.

S

“The subdividing of a market into homogeneous (or similar) subsets of customers, where any subset may conceivably be selected as a target market to be reached with a distinct marketing mix."

Kotler (2000)

Segmentation is the start to this whole process and many different factors influence how the market is segmented. These factors include demographics (age, gender, social class and life cycle stage), psychographic (self-concept, personality and lifestyle), geographic (region, country) and behavioural (loyalty, usage and desired benefits). (Solomon, 2010)

This Volkswagen advert proves that market segmentation has to be taken into account. By using the caption: "Touareg. The luxury off-road." it is quite easily targeting the westernised markets which indicates a positioning that has been thought out geographically. Style and appearance is a very common factor in Western culture and wanting to live life in ultimate comfort is another, indicating that psychographics have also been analysed. The way that the goat looks also hints at Western culture because it's coat is cut in the shape popularly used for poodles which are traditional known as a 'posh dog'.

T

"Once segment profiles have been identified, their attractiveness can be assessed. Segment attractiveness will depend on the size and predicted evolution of sales, buying power and the amount of competition targeted at the same segment."

(Pelsmacker et al. 2010, p133)

 Targeting is a company's way of measuring the profitability and possible successfulness of each segment. Doyle created five factors to help business do this: segment size, segment growth, segment profitability, current and potential competitors and core capabilities. The size of the segment can be measured by the potential number of customers, and the growth by whether or not the audience will increase or decline. Profitability can be analysed using a SWOT (strengths, weaknesses, opportunities and threats) analysis and also by using Porter's Five Forces. The Five Forces diagram below can be used to assess the competitive analysis and SWOT can help with core capabilities.

P

"The position that a product has within a market reflects consumer opinions of that product and the comparisons they make between it and competing products. The aim; position products within the minds of consumers as more attractive, and better able to supply their demands, than competing products."

(Boddy, 2008, p293)

Positioning a product within the correct segment is vital for it's survival. Many different marketers use the 'Marketing Mix' with the Four P's to help place their product in the market, and if each of these are chosen correctly they will give the chosen product or service an advantage.

• Product
• Price
• Place
• Promotion

Now, both of the products below are very different, but will the market segment be the same? Very high-tech gadgets are now on the market, but will the brands always place them out of reach of normal, working class people? Apple have proved that statement wrong aftere placing the new Ipad at a price of around £500, but time will tell if Sony and Mercedes take the same route.

Sony's new 360 degree view hologram



Brabus Mercedes-Benz Viano Lounge