The paper "Business and Marketing Planning" is a good example of a marketing assignment. The PST has established itself as the quality providers in the adhesive industry at such the company has a competitive advantage compared to competitors. Clear market segmentation and proper targeting will enable the company to scale back the sales volume. Some of the identifiable market segments include; product type; applications, and region of operation. Being the market leader in quality products, STP should target larger companies in their respective categories. The big companies are known for their high purchasing power due to their massive resources at their disposal (Kotze, n.d. ).
In most cases, these businesses will choose expensive products that are of high quality than cheaper products of low quality. The company should avoid startups and small businesses markets because most of them are about reducing costs of operation ("Growth of Small Businesses", 1949). Hence they tend to purchase cheaper products and have a little purchasing power because of their constraints to finances. Under product type, the market will present STP with different consumers in need of alternative STP products.
The company should be aware which users will be interested in say K2-Tape and who will be the target consumer of the other products. The type can also be broadly used to determine what type of product based on the taste, interests the user. With taste preference, we have various dimensions that comfort the consumers. Rarely we get consumer conforming to the same taste. Some will love the tape or other product to be customized with business logos while some entities will find it fit to have items supplied in a particular color. The consumer's need for the product should also be determined and categorized appropriately.
Some of the varied applications of adhesive products are in wood industries, construction, packaging, transportation and domestic applications. The major players in specified applications should be demarcated clearly and targeted; the company should be able to understand the operations of those entities, know them name by name and come up with best and efficient marketing strategies targeting them. One way of a business exhibiting mighty is through its coverage of a geographical area. The occupation of the geographic area should not only restrict on the physical setup of the firm, but it should extend to a vast spectrum which includes how far the business supplies its products, its regional basis, the number of employees and even the sales return (Goldwyn, 2004).
After analyzing the target market based on the said categories, it will be easier for STP to consolidate its market share. QUESTION: 2 The first and important strategy for STP economy tape product is to understand the target market. The issue of understanding the market should not be for granted.
A Clear understanding of market elements and dynamics is essential; these parts include the consumer market size and growth, openness and macroeconomic stability (Shepherd, 1972). The size of the user base is very crucial and is one of the major deciding factors if the business will break even. For STP tape brand the consumer base includes all the market segments presented. The product will be targeting big entities in the market segment that have high purchasing power. After understanding our target, the STP Company should have a thorough analysis of the target market.
There is the need to understand the current market growth and trends, projected market growth, the performance of the competitors and in-depth understanding of barriers to new entries.