Introduction
For anyone trying to venture into a market for any of his product, a detailed approach to the whole marketing idea is paramount (Wgu.com, 2012). A product will not campaign for itself out there n the market setting. It needs forces to push it forward for a maximum market penetration. Therefore, when deciding to launch a new product, the three mentioned terms above come into play. Segmentation, Targeting and Positioning (STP) are the key drivers for a product to comfortably have a commendable performance in the market. The three steps are as explained below:
Segmentation: This is the first step in the Segmentation, Targeting and Positioning cycle. It entails getting to know the kinds of consumers existing in the targeted markets and their needs.
Targeting: The second step in the cycle. Once the segments for the product in focus have been created, then the marketers target those respective segments.
Positioning: The third step in the cycle and it helps the marketer in building a perception as it pertains to the product in the mind of the targeted consumer (SmallBizConnect, 2013).
The Approach for my New Product
The product I want to campaign for in the market goes by the name smoothies. This is a pulp kind of a product made from mixture of mashed fruits. The idea comes after seeing how bulky it is for people to keep on carrying solid fruits especially when going for events. It is also guided by the urge to give people different tastes and flavor resulting from a well laid out recipe, as far as the mixing of different types of fruits is concerned. This product is not specific to a particular group of people but it is consumable by almost everyone as far as the flavor matches their preference (SmallBizConnect, 2013).
It is now the different variables that influence my product will make my approach to the marketing idea be guided by the Segmentation, Targeting and Positioning cycle. This process will lead to a detailed analysis and then be able to come up with the best strategy (Wgu.com, 2012).
For the first step of segmentation, a detailed order will be followed. This step will determine the right direction in the market penetration. It will help me in selecting the attractive markets for my product. The approach will be, I break the market into simple components, regroup them into segments, and then I select the best segment to target. For this first process, I will table my approach in four different ways (SmallBizConnect, 2013).
- Demographics- This will mostly focus on the characteristics of the targeted consumers. Preferences do vary from one group of people to another. I will consider variables like age, gender, level of education, Income bracket of the targeted population as well as the cultural background (SmallBizConnect, 2013). From the outcome, I will be able to know the age bracket with the majority consumers, the variability on consumption basing on the gender, how elite is the population so that my penetration becomes easy, how affordable I should set my prices and lastly if it is a taboo to make some brands as I embark on this venture.
- Psychographics – This aspect focuses on the way of living of the targeted consumer. I will be interested to understand their social class, attitudes, personality, lifestyle and opinions (SmallBizConnect, 2013). This will help me to know the kind of standards to set for my smoothies. It will also guide on the kind of packaging to be adopted for each particular group of consumers. Fr instance, if the targeted group is from an affluent residence, poor packaging of the product will present it as a low quality product and thus losing out on this group. Therefore, a good packaging should be the one that reflects on the consumers’ way of living and this makes them feel like they own the product.
- Behavior – This will be based on the customer’s behavior when it comes to shopping. I will strive to establish whether the targeted customers are online shoppers, do they attend the shopping centers, the brands they prefer as well as the prior purchases (SmallBizConnect, 2013). I would be planning to outdo the competitors in the market who would be offering same or similar product like the one I have. So knowing the consumers behavior I will be in a position to plan well and see the best way to work my way up to a strong brand personality. From the behavioral analysis, I will be able to construct my brand pyramid creating a closer consideration of every step in the pyramid and how well it works towards the success of my product.
- Geographical location – The location of the target consumers is of essence. It will help me to determine the scope of my product. I may decide to target different continents, countries, cities, provinces as well as rural areas where the targeted consumers reside (SmallBizConnect, 2013). This will help me to set a direction for my product from the moment of its launch to the different locations enabling me to secure consumers for the same. In addition, the location of the targeted consumers has an implication on the production cost of the product for it will require me to consider the cost of transportation up to the destination of the consumers. With a detailed geographical analysis, I will be in a position to reposition myself and come up with the best solution to this.
Having addressed the segmentation aspect of my approach, I will then move to the second process in the STP cycle and see how well to target the segments. It is true that, not all the segments will be sufficed by a single strategy and depending on the outcome of the segmentation process; I should come up with various strategies for everything to work out effectively.
I will follow three strategies when it comes to selection of my targets. The strategies are as explained below:
- Undifferentiated Targeting – Here the market is viewed as a single group with no segments and therefore it calls for only a single marketing strategy. It may suit a business or rather a product that has no competitors in the market (SmallBizConnect, 2013). So depending on the outcome on my market research, I will be able to know where to categorize my smoothies and thereafter know the kind of strategy to put forth for the same.
- Concentrated Targeting – This is the approach where a marketer focuses on a single group and makes the best out of it. I will embrace this approach as I am starting out small and come up with firm strategies as my product gathers momentum in the marketing arena. Through the market research, I will put my product into a test with the selected group and then analyze the outcome and the concentrate on creating a niche in that particular group as I plan on how to embrace market mix for new marketing grounds.
- Multi-Segment Targeting – For two or more well-defined segments, this approach is the best. It requires that one comes up with different strategies to suit the different segments which are targeted (SmallBizConnect, 2013). It is a very beneficial approach only that it is a bit costly fro it requires a well laid down management structure, intensified market research as well as many promotional strategies.
Before I finally settle on one targeting strategy, I will do a cost benefit analysis of all the available strategies to see how each affects my product marketing. I will also see how they interrelate with each other to see how best I can incorporate them as I grow into the venture.
Now considering my product, I am starting out small with my new product. I will go for the concentrated targeting strategy. The best population to start with is based on the segmentation by age. From the young children to young adults I will be able to get a desirable market for my smoothies. Since my product is a fast food and this group comprises of hyperactive people, therefore it will be the best segment to start out with. I will consider a packaging design which is very attractive with flavors that will rhyme with their tastes. A colorful packaging is always suitable for members in this segment.
After the above two procedures are catered for, I then look at my positioning mode. Position entails the process of creating a lasting impression in the minds of the consumers. It may also entail boosting of the perception of the consumer as far as a product or a brand is concerned. To achieve a well-seasoned product positioning, I will very much consider the various promotional activities I should invest in and carefully make a definition of my marketing mix. I will strive to understand the competing products as well as the benefits that are sought by the targeted market (SmallBizConnect, 2013). This will enable me to identify the advantage that I can subscribe to to achieve the best in the market thus winning many customers.
References
SmallBizConnect, (2013). ‘Market Analysis’, Web, http://toolkit.small biz.nsw.gov.au/part/3/10/49
Wgu.com, (2012). ‘Market Segmenting, Targeting, and Positioning’, chapter 5, Retrieved from, https://web5.wgu.edu/aap/content/mkc1-chapter_5.pdf
