Segmentation strategies

STP - marketing (segmenting, targeting, positioning).

Segmenting - market segmentation - the stage of selecting individual consumer groups in the market

Targeting - target market selection - target segments are selected from the selected market segments

Positioning - positioning - determining the position of the company, goods among analogues on the market

The segmentation process begins with determining the size and boundaries of the entire market to be segmented. Further, a set of factors is determined, due to which the market is segmented.

Segmentation factors:

Geographical

Demographic

Social

Psychological

Behavioral

Competition

Competition analysis makes it possible to determine the position of the company in the market, as well as the competitiveness of the goods and services offered.

Competition is the struggle for market share between companies whose customers have similar needs.

F. Kotler identifies several signs of competitive actions:

active (aggressive)

selective

stochastic

passive

Active (aggressive) competitors - react quickly and aggressively to all events taking place on the market.

Selective competitors - compete only in selective indicators, such as price reduction.

Stochastic competitors are characterized by unforeseen actions. Sometimes they react aggressively, and 

sometimes they ignore competitive actions.

Passive competitors practically do not react to the actions of competitors.

During the analysis of competitors, the model of the five forces of competition, which was developed by M. Porter, is important.

Five forces of competition that M. Porter identifies:

competition between manufacturers in the industry

the threat of new competitors

economic opportunities for suppliers

economic opportunities for consumers

substitute goods

Competitive advantage of the company. Part 2

Competitive advantages of the company are external and internal.

External competitive advantages include those indicators that characterize the company's advantage in meeting certain consumer needs. Thus, external competitive advantages form value for the consumer.

External competitive advantages include: product quality, service, company image, consumer knowledge, high level of innovation, and more.

Internal competitive advantages include those indicators that characterize the company's advantages in the price aspects of competition. Thus, internal competitive advantages characterize the value for the manufacturing company and the advantages based on the production and organizational know-how of the company.

Internal competitive advantages include: technology, production efficiency, economies of scale, management efficiency, effective contacts with suppliers, etc.

Competitive advantage of the company. Part 1

A company's competitive advantage is an indicator that characterizes its superiority over competitors in the target market.

Forming a competitive advantage is the basis of a marketing strategy that ensures the company achieves a level of growth and profitability above the average in the market.

The strength of the company turns into a competitive advantage, provided that the indicator has the highest rank.

There are three main areas of competitive advantage:

organizational;

functional;

benefits that are based on relationships with external organizations.

Organizational advantages include the following indicators: high level of company mobility, company size, acquired experience, financial strength, management efficiency.

Functional advantages include indicators of the company's functional services (marketing, production, personnel): company image, size and number of target markets, consumer knowledge, effective pricing strategy, effective promotion strategy, effective distribution and movement of goods strategy, effective sales staff, benefits of service policy , knowledge of competitors, advanced technology, production efficiency, product quality, production mobility, economies of scale, highly qualified personnel.

The benefits, which are based on relationships with external organizations, cover a number of indicators that reflect the image and acquired experience of the company with financial institutions, resellers, political organizations, competitors, suppliers.

Analysis of the strengths and weaknesses of the company

The strengths (advantages) of the company are its features that make it possible to identify and form competitive advantages.

Weaknesses (weaknesses) of the company are those indicators that determine its competitive vulnerability.

The object of the analysis of the strengths and weaknesses of the company are its internal factors. The process of this analysis is shown in the figure below:

At the stage of formation of indicators by which the strengths or weaknesses of the company are determined, five main sections are used - marketing, production, finance, organization, personnel.