The Concept of the STP-Free-Samples for Students-Myassignmenthelp

Question: Describe the concept of the STP (Segmentation, Targeting, Positioning) -model and its benefits to a company. Answer: Segmentation, Targeting, and Positioning (STP) is a common model used to create marketing approaches. In the case where the marketing approach depends on the whole mass market, the company may fall. In describing the three steps model differently, segmentation entails recognizing markets which are segmented and creating new profiles. Targeting is a procedure which involves recognizing segments which are attractive especially which are profitable for the organization (Khan, 2013 pp.56). Finally, positioning focuses on the entire business where the competitive advantage is assessed to determine the position by evaluating the minds of customers. The STP model is beneficial since it provides the businesses with an opportunity to find customers with similar needs and wants. Additionally, businesses may use the STP model to create communication strategies since the marketers need to focus on propositions, create and deliver messages which are personalized and relevant to associate with the various audiences. In applying the STP model to Minnesota Micromotors Inc. (MM), it is leading in the manufacture of direct and brushless motors which are employed in orthopedic medical instruments. Minnesota Micromotors Inc. is dedicated to delivering high performance in the basis thermal resistance appliances as well as in the ratio of power to size. Therefore, MM offers various benefits such as less noise, long-lasting, reliable, efficient, and brush free erosion which minimize the electromagnetic interferences (Venter, Wright and Dibb, 2015 pp.78). To start with, through segmentation, MM strengthens and expands the market. Targeting allows the MM to reach customers to provide the functionality and features. Finally, the positioning allows MM to analyze the customers needs and also set standards and goals on how to provide value motors. The MMs target customers were the orthopedic users especially the doctors. The MMS tools can be sued in trauma and bone surgery since they are orthopedic medical instruments (Wirtz and Lovelock, 2017 pp.10). MM considers niche market which allows it to distinguish from the competition. It targets the audience who wishes to pay a high premium for the business performance (Schlegelmilch, 2016 pp.68). Also, customers in the largest segment are targeted since they allow the business grow through training and product development. Yes, to MM all the segments are equally attractive though they have different importance. For instance, segment A focuses on high positions of the support sales for customization. Segment B focuses on high thermal resistance performance on the basis of the sales knowledge. Segment C is least price responsive but it is needed for motor performance in the ratio of power to size. Finally, segment D is the most price responsive and it is allocated to the interested individuals at economical rates. Therefore, the segmentation is equally attractive since it studies customers and the buyer behavior for the effectiveness of MM. The customers needs and expectations evolve over time since they have enhanced close relationships with MM. Additionally, close associations between the customers and the MM participants such as sales representatives, engineers, and procurement are evident. Therefore, the customer relationships provide MM with the opportunity to expand and strengthen the main business. Bibliography Khan, T., 2013. STP strategy for New Product Launch-a Work in Progress.International Journal of Business and Management Invention,2(3), pp.56-65. Schlegelmilch, B.B., 2016. Segmenting Targeting and Positioning in Global Markets. InGlobal Marketing Strategy(pp. 63-82). Springer, Cham. Venter, P., Wright, A. and Dibb, S., 2015. Performing market segmentation: a performative perspective.Journal of Marketing Management,31(1-2), pp.62-83. Wirtz, J. and Lovelock, C., 2017.Positioning Services in Competitive Markets. World Scientific.