This in-depth analysis explores the essential strategies of segmentation, targeting, and positioning (STP) in the context of Souq.com, a prominent online marketplace based in the Middle East. Starting with segmentation, the paper underscores the significance of dividing the customer base into segments with shared needs and interests. Souq.com, which specializes in lifestyle accessories for individuals aged 18-45 in the Middle East, offers a prime example of demographic segmentation. The portal caters to those who consider fashion a necessity, effectively addressing the lifestyle preferences of its audience.
Transitioning to targeting, the paper elucidates the options available to Souq.com marketers. Concentrated targeting focuses on a particular niche within the market. For instance, the portal can narrow its focus to women aged 18-45 who favor denim products, or parents seeking kids’ clothing. Furthermore, the paper delves into multi-segment targeting, highlighting its benefits and complexities. Souq.com can diversify its target audience, catering to both men and women, broadening its reach while demanding thorough market research and a significant budget.
The discussion then turns to positioning, an imperative tool in brand development. Souq.com, as per the insights of Hunt and Arnett (2004), can influence customer perceptions by offering exclusive, distinct items not available on other platforms. This differentiation strategy helps in building a positive brand image and enhancing consumer experiences. Additionally, Souq.com can opt for cost leadership, ensuring competitive pricing that attracts budget-conscious shoppers.
This comprehensive analysis offers valuable insights into how Souq.com can effectively employ STP strategies to stand out in the competitive e-commerce landscape.
Strategic Marketing Approach: Segmentation, Targeting, and Positioning for Souq.com
Segmentation/Targeting
As per (DeFond, Francis and Wong, 2000), segmentation is a business strategy which involves
classifying customers into segments with common needs and interests. There are different ways in
which marketers can segment their target audience including demographics, psychographics,
behaviour and geographical factors. The strategy of segmentation facilitates the marketers to develop
a specific marketing strategy for a specific group. As far as demographics is concerned, it emphasise
on lifestyle of the target audience. The marketers of Souq.com can target consumers who are fond of
fashionable items and consider it a necessity in their lives. The portal offers lifestyle accessories for
men and women in the age group 18-45. Also, the portal is operational for Middle East consumers
with its headquarter in Dubai. As far as targeting is concerned, the marketers at Souq.com can adopt
concentrated strategy wherein the aim of the marketer is to target a particular market niche. For
instance, if we take ‘women denims’ then the company can target the women in the age group 18-45
who like wearing denims. Similarly, for ‘kids clothing’, the company should target the parents of the
kids. With this, the marketers will be facilitated to focus on the needs of the consumer. There are other
factors also that could be used by marketers of Souq.com to target the audience such as
psychographics, behaviour and geographical. Besides concentrated marketing strategy, the company
can also use multi-segment marketing strategy. This strategy will facilitate the marketers to focus on
more than two well defined market segments. For instance, the souq.com could target women as well
as men by offering clothing for them as well. This could be highly beneficial for the portal since they
will be able to cater to the needs of different consumer segments. However, this strategy is costly and
involves thorough market research. Besides that, it also involved greater participation of management
and significant budget for promotional activities.
Positioning
As per (Hunt and Arnett, 2004), positioning refers to the business tool which aims at developing a
product and image of the brand in the minds of consumer. It facilitates the marketers to enhance the
perception of the customers and their experience with the brand. It can allow the marketers to
influence the perceptions of the customer base through promotional activities. Marketers at souq.com
can effectively influence the audiences by offering exclusive items which are not offered by other
portals. This strategy to sell items could help the website build a positive brand image. Hence, the
souq.com can adopt the strategy of differentiation to place itself in the industry. In this, the products
manufactured or sold by the portal are exclusive which can provide them a competitive edge among
competitors. This positioning strategy can enable a good understanding of the products of portal
among consumers. With this, the portal will be able develop a positive image in the eyes of their
customers. Besides adopting differentiation strategy, the other strategy which could be adopted by
souq.com is cost leadership (DeFond, Francis, and Wong, 2000). The marketers can fix the prices of
the products in a way that these are low as compare to other portals. It will also enable the portal to
gain competitive edge since the consumers could buy products from their portal at a reasonable rate.