Marketing activities are based on the needs of consumers (users), and consumers or users have different expectations and requirements for a certain product (service). Especially under buyer’s market conditions, when consumers buy or use goods, in addition to considering the utility characteristics such as the function of the goods, they often pursue the individuality of the goods, thus forming different consumer groups’ demand preferences for similar goods (services). Marketing activities have proved that a successful enterprise must not only clarify what kind of needs it serves, but also clarify whose needs it serves. Serving whose needs is a business choice for the enterprise, and this choice is to choose the target market. Correctly selecting the target market and clarifying the specific service objects of the enterprise are the primary content and basic starting point for the enterprise to formulate a marketing strategy. Market segmentation is the basis and premise for the enterprise to choose the target market, and it occupies an important position in the marketing activities of modern enterprises.
The core of modern enterprise marketing strategy is called “STP marketing”, namely segmenting the market, selecting the target market and positioning the market. “STP marketing” or target marketing can help enterprises better identify market opportunities, thereby providing marketable products for each target market. Target marketing is divided into 3 basic steps.
The first is market segmentation, that is, dividing the market into different customer groups according to the different needs of buyers for products or marketing mix behaviors, and outlining the behavior of market segmentation.
The second is target market selection, that is, the behavior of choosing to enter one or more market segments.
The third is market positioning, which is to determine a competitive and distinctive quality, feature or behavior for the product and marketing mix.