Organizational Marketing Strategy Analysis
Review the market segmentation, targeting, an positioning strategy (STP) of your organization. How can market segmentation be useful for the organization? On what factors do you suggest the organization base its market segmentation? How can the organization benefit from the market segment it pursues? Identify and discuss the targeting strategy that is ideal for the organization based on the segmentation strategy. Lastly, discuss the strategic positioning of the organizational offerings; does strategy make good marketing management sense or not; explain.
Market Segmentation: Market segmentation is the process of dividing a market into smaller groups of consumers with similar needs or characteristics. This allows the organization to tailor its marketing efforts to the specific needs and preferences of each segment, leading to more effective and efficient marketing.
Factors for market segmentation: Organizations can base their market segmentation on various factors such as demographic, geographic, psychographic, and behavioral. For example, Walmart could segment its market based on factors such as age, income, education, and geographic location.
Benefits of market segmentation: Market segmentation can provide numerous benefits for organizations, including:
- Increased understanding of target customers – Walmart could gain a deeper understanding of the needs and preferences of each segment, allowing it to create more effective marketing messages and campaigns.
- Improved targeting – By segmenting the market, Walmart can more effectively target specific groups of consumers, reducing the need for broad-based marketing efforts that may not be as effective.
- Increased efficiency – Segmentation can lead to more efficient use of marketing resources as Walmart can focus its efforts on the segments that are most likely to respond positively to its offerings.
Targeting Strategy: Based on its segmentation, Walmart can pursue a number of different targeting strategies. For example, if Walmart were to segment its market based on income, it could target lower-income consumers with its “Everyday Low Prices” strategy, while targeting higher-income consumers with a more premium shopping experience and a wider selection of upscale products.
Strategic Positioning: Walmart’s strategic positioning is centered on offering a wide selection of products at low prices. This positioning makes good marketing management sense as it appeals to cost-conscious consumers who are looking for value. By offering a wide range of products at low prices, Walmart is able to attract a large customer base and build a strong brand image.
In conclusion, market segmentation, targeting, and positioning are important components of an overall marketing strategy. By segmenting its market and tailoring its marketing efforts to specific segments, Walmart can improve the effectiveness and efficiency of its marketing efforts and better position itself to meet the needs of its target customers.