Overview

The marketing concept holds that an organization achieves its goals by knowing and satisfying the needs of target markets better than competitors. Strategy turns that philosophy into action through segmentation, targeting, positioning (STP), and a sustainable competitive advantage.

Key Concepts and Frameworks

• Customer Orientation: Start with market research to uncover unmet needs and jobs‑to‑be‑done.
• Integrated Marketing: Coordinate the 4 P’s—product, price, place, promotion—across functions.
• Value Proposition: Clear statement of benefits that solve a customer problem + why it’s better than alternatives.
• STP Process:
  • Segmentation: Divide market by demographics, psychographics, behavior.
  • Targeting: Evaluate segment size, growth, and fit; select one or more to serve.
  • Positioning: Craft brand meaning using perceptual mapping and a positioning statement.
• Strategic Planning Tools: Ansoff Matrix (market penetration, product development, market development, diversification), BCG Growth‑Share, Porter’s Five Forces.
• Competitive Advantage: Cost leadership, differentiation, or focus (Porter); sustained by core competencies.

Step‑by‑Step Example

Scenario: GreenBite wants to launch an oat‑based energy bar in the U.S. health‑food market.

1 Segmentation → Identify fitness enthusiasts, busy professionals, and vegan college students.

2 Targeting → Choose vegan students (high growth, influencer visibility).

3 Positioning → “The only zero‑waste, plant‑powered bar that fuels late‑night study sessions.”

4 Competitive Advantage → Differentiation via compostable wrapper + B‑vitamin fortification.

5 Marketing Mix → Product: 4 flavors; Price: $2.29 premium; Place: campus stores + TikTok shop; Promotion: influencer challenges.

Final Answer: Using STP and a differentiation strategy aligns GreenBite’s offering with a lucrative niche and articulates a compelling value proposition.

Quick Tip