{"id":258248,"date":"2023-12-07T13:35:37","date_gmt":"2023-12-07T13:35:37","guid":{"rendered":"https:\/\/imarticus.org\/blog\/?p=258248"},"modified":"2024-07-31T13:33:20","modified_gmt":"2024-07-31T13:33:20","slug":"market-research-and-market-strategy","status":"publish","type":"post","link":"https:\/\/imarticus.org\/blog\/market-research-and-market-strategy\/","title":{"rendered":"Market Research and Market Strategy: Market, Competition and Business Assessment, Customer Segmentation, Market Positioning"},"content":{"rendered":"\n
Imagine you are the life of the party, and as a result, you are given the task of planning a big party. What is the first thing you do? You start by listing the kind of music, food, and timings your friends prefer. Once you do this, you are all set to go.<\/span><\/p>\n\n\n\n In the marketing context, market research depends upon all the information you have been able to collect to make it to the end product or service. In market research, target marketing is the work that you do to sell the product\/service in the best way possible. <\/span><\/p>\n\n\n\n Market research helps you figure out what your customers are looking for, and market strategy refers to how you can use that information to sell the product\/service.<\/span><\/p>\n\n\n\n While we are talking about market research and the strategies involving the same, let us quickly dive into a <\/span>CEO course<\/a><\/strong> which talks about industry standards extensively. <\/span><\/p>\n\n\n\n Throughout this blog, we will also touch upon different terms in target marketing, especially the STP (Segmentation, Targeting, and Positioning) factor. Moving ahead, we plan to cover important statistics in target marketing along with the advantages of conducting market research in one\u2019s area of business. Keep reading!<\/span><\/p>\n\n\n\n The first known reference to target marketing was recorded around 1960 when Neil H. Borden, a marketer who believed in a few factors, decided to come up with the \u2018marketing mix\u2019, a term that consisted of four different factors: product, promotion, price, and place. <\/span><\/p>\n\n\n\n Borden travelled outside his academic bounds to put out a statement that was followed only later into the century. In the 1980s, the 4 Ps were expanded to accommodate other factors namely physical evidence and process.<\/span><\/p>\n\n\n\n Here is the timeline of target marketing as seen throughout the years -<\/span><\/p>\n\n\n\n To understand why companies decide to segment consumers before moving forward with a particular product or service, we must consider these points - <\/span><\/p>\n\n\n\n In asking the questions, focus on -<\/span><\/p>\n\n\n\n The STP model (Segmentation, Targeting, Positioning) is a fundamental framework for target marketing that helps companies to effectively reach their desired target group. The three phases are explained below, followed by brief examples:<\/span><\/p>\n\n\n\n Segmentation is a method of dividing the broad market into smaller, more distinct groups based on common characteristics. These can be psychographic, demographic, behavioural or geographic characteristics. <\/span><\/p>\n\n\n\n Example: <\/b>A skincare company segments its market based on age groups: teenagers facing acne problems, young adults concerned about ageing, and older adults dealing with sensitive skin issues.<\/span><\/p>\n\n\n\n Market targeting focuses on selecting specific segments from the identified groups. It deals with analysing the appeal of a segment and choosing the best ones. <\/span>CEO training programs<\/a><\/strong> offer a more comprehensive insight into this topic.<\/span><\/p>\n\n\n\n Example<\/b>: A skincare company decides to target young adults. They come to the conclusion that this group is sizable, accessible, and responsive to their skincare maintenance products.<\/span><\/p>\n\n\n\n Market positioning creates an image or perception in the mind of the target audience. As a result, the audience is motivated to pursue the said product or service as opposed to from a different provider. It focuses on UVP (unique value proposition) to differentiate it from other brands.<\/span><\/p>\n\n\n\n Example<\/b>: The skincare company positions its anti-ageing products as scientifically advanced, natural, and affordable. Through this, it emphasises its effectiveness in reducing fine lines and wrinkles compared to competitors' products.<\/span><\/p>\n\n\n\n Value propositioning is an integral part of target marketing and works in these ways -<\/span><\/p>\n\n\n\n Customer segmentation enables a deeper understanding of target marketing as it makes it easier for target marketers to devise products according to one\u2019s preferences and choices. Let\u2019s look at the criteria for segmentation.<\/span><\/p>\n\n\n\n Demographic segmentation - <\/b>A widely used criterion in itself, demographic segmentation divides consumers into different groups based on characteristics such as -<\/span><\/p>\n\n\n\n Psychographic segmentation - <\/b>Psychographic segmentation deals with categorising consumer behaviours based on their psychological traits. These criteria are -<\/span><\/p>\n\n\n\n Behavioural segmentation - <\/b>Behavioural segmentation involves dividing consumers into different brackets based on their behaviours \u2014actions, and patterns of interaction with products and services. Key criteria for behavioural segmentation include -<\/span><\/p>\n\n\n\n Geographic segmentation - <\/b>Geographical segmentation is carried out using physical locations and the factors associated with them. Some criteria that one can include are - <\/span><\/p>\n\n\n\n Needs-based segmentation - <\/b>Needs-based segmentation involves categorising consumers according to their need-based purchasing patterns. These can be driven by specific needs, desires, and motivations like -<\/span><\/p>\n\n\n\n Market segmentation, along with targeting and positioning poses a unique mix to targeted marketing. Here is how they are all connected -<\/span><\/p>\n\n\n\nUnderstanding Target Marketing and Its History <\/span><\/h2>\n\n\n\n
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Why Companies Segment Consumers<\/span><\/h2>\n\n\n\n
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The Three Stages of Target Marketing<\/span><\/h2>\n\n\n\n
Market segmentation<\/span><\/h3>\n\n\n\n
Market targeting<\/span><\/h3>\n\n\n\n
Market positioning<\/span><\/h3>\n\n\n\n
How Is Value Propositioning Related to Target Marketing? <\/span><\/h2>\n\n\n\n
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Customer Segmentation<\/span><\/h2>\n\n\n\n
Segmentation criteria<\/span><\/h3>\n\n\n\n
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How Market Segmentation, Targeting, and Positioning Are Co-Related<\/span><\/h2>\n\n\n\n