Comparative Analysis of Segmentation, Targeting, and Positioning (STP) Strategies

Segmentation Comparison

Key Market Segments

Samsung

According to Hoang Tien (2019), Samsung Company focuses on varied market segments by offering a wide range of product models. The products are sold at varying price ranges. Instead of offering a flagship product, Samsung targets a larger customer base by producing products at varying budget ranges and uses. By offering products at a low price, the company aims to survive in markets where high sales volumes are possible, but customers cannot afford highly-priced products. Through this strategy, Samsung has successfully established solid markets among premium and mid-range smartphone market segments.

Samsung takes a more inclusive global strategy by targeting both developed and developing and developing regions. Samsung has established a strong market in Europe and America, but the company still targets customers in developing countries like Latin America, the Middle East, and Africa (Hoang Tien, 2019). One of the reasons why Samsung has customers in the developing world is because the company offers low-priced products.

The psychographic factors influencing Samsung’s targeting strategy include technology enthusiasm, love for cutting-edge technology, and value for money. Samsung’s customers are budget-sensitive, and that is why the company offers products at low prices (Hoang Tien, 2019). Besides, the company’s primary target is immersed in tech and media consumption and is likely to be game lovers. For that reason, the company’s devices come with large screens to create an immersive experience for customers.

Apple

On the other hand, Apple focuses on the premium market segment. The company’s smartphones are highly priced, implying that they only target high-income customers with significant disposable income (Hoang Tien, 2019). Apple’s segmentation strategy is one of the reasons why the company markets large profits. Although it does not access a large customer base like Samsung, targeting a premium market helps the company make significant profits per device.

Geographically, Apple targets affluent markets in developed countries in North America, Asia, and Europe. Despite the company’s global presence, the markets above serve as Apple’s primary focus. The obvious reason for targeting this market is that people in these areas are more inclined to purchase premium products (Hoang Tien, 2019). Notably, North America is the leading geographical market segment for Apple, followed by Western Europe. Recently, Apple has been making inroads in emerging economies in India and China.

Apple’s psychographic targeting strategy borders on values, emotions, and lifestyle. The company targets individuals who seek an emotional connection with their preferred brands. As such, this explains why Apple has managed to maintain a stable market since a customer’s attachment means they still go for an Apple product whenever they want to upgrade. Also, Apple’s primary target market loves sleek designs, and this explains why the phones are sleek and have large screens.

Commonalities and Distinctions in Segmentation

According to Hoang Tien (2019), one of the similarities in segmentation between Apple and Samsung is that they both target premium customers. Although Samsung also targets low-end customers for some products, the company has established a solid market among high-end customers. Also, customers of the two companies are tech enthusiasts and early adopters. In other words, the love for innovative products makes the customers want to own a newly launched product as early as possible. Another notable commonality in segmentation is that both companies have adopted the pursuit of a global market, even though Apple’s global strategy is limited to developed countries.

On the other hand, distinctions in segmentation include their pricing. Apple focuses exclusively on premium pricing for its flagship products. On the other hand, Samsung adopts a more versatile approach, with products to cater to the needs of budget, mid-range, and premium customers. Another key distinction regards brand loyalty and product integration. Whereas Apple has seamlessly integrated its products, Samsung offers customers the freedom to switch between products.

Targeting Comparison

Samsung’s target market includes all potential customers who may need to use the company’s mobile devices and related products. To ensure successful targeting, the company pursues those it feels may require the company’s products. Regarding the mobile phone business segment, Samsung targets regular mobile phone users who are budget-sensitive but are in need of a functional product.

On the other hand, Apple’s targeting strategy involves determining a segment that is most attractive for the firm. Based on market segments identified from the segmentation stage, the company chooses where it can sell products. To that end, the company positions itself as a premium provider of products, offering high-quality products (Mallin & Finkle, 2011). The company’s targeting strategy is based on fulfilling unique customer demands.

Similarities and Differences in Selecting Primary and Secondary Markets

One of the similarities in selecting the primary and secondary markets between Apple and Samsung is that they have both adopted a global strategy. Samsung is available in a variety of countries across the world. The company uses regional and territorial distributors to distribute its products. The same applies to Apple, which has a solid global presence (Mallin & Finkle, 2011). Although the company’s market is largely concentrated in North America and Europe, Apple has made significant inroads into other countries.

On the other hand, the companies differ with regard to local adaptation preferences. Samsung is flexible and allows significant product adjustments to suit the local market needs. However, Apple does not allow significant product adjustments beyond language and local app preferences (Mallin & Finkle, 2011). Another difference between the two companies is based on pricing. Samsung, in a bid to meet customer demands, offers fair prices that can be managed by the company’s broad target market. However, Apple exclusively targets high-end customers and has no motivation to make downward price adjustments to accommodate customers.

Influence of Targeting Strategies on Product Offerings and Marketing Messages

As mentioned above, Apple targets tech-savvy premium customers who love design and prefer a seamless integration of its device ecosystems. To that end, the company manufactures top-tier devices with a performance focus. Apple’s targeting strategy influences the company to manufacture integrated devices. For instance, one can use their Apple watch to find a lost iPhone. Another influence of Apple’s targeting strategy on their production is that it makes the company manufacture a limited product range. Apple only manufactures two iPhone variations, focusing on refining the quality and other performance features. Accordingly, Apple’s marketing message focuses on exclusivity and prestige.

Conversely, Samsung’s targeting strategy is a broad, budget-conscious customer base who could also be tech enthusiasts. As a result, the company produces devices that target diverse market bases. For instance, the A-series smartphones are for low-budget customers, the Samsung Galaxy S-series for mid-tier customers, and Samsung S-Ultra is for high-end customers. To cater to the needs of the tech-savvy segment, the company incorporates cutting-edge innovations in its products. These innovations include foldable display technology, high screen resolution, and large zooming capabilities. As such, Samsung’s marketing message centers on innovative features found on Samsung’s devices.

Positioning Comparison

Samsung employs a standard positioning approach as a technology firm. The company’s positioning strategy significantly depends on competitors’ actions. The company’s continuous innovation is meant to attain a level playing field with competitors depending on the latest technology in the market. Every new product launched by Samsung introduces new technological innovation into the market. The company’s positioning strategy has helped it maintain leadership in innovativeness among other strong players in the sector. Overall, Samsung has an imitative positioning stance, which involves mimicking competitive products with the hope that they can improve from the original manufacturers’ technology. The evidence of Samsung’s imitative approach is visible in the screens they use in their smartphones, which take after iPhone designs.

In contrast, Apple creates an emotional connection with its users by offering exclusive experiences on its devices. Through continuous research and development (R&D), Apple intends to gain a competitive edge by manufacturing products with the latest technology (Nguyen et al., 2019). Additionally, Apple incorporates unique technologies to ensure its products cannot be imitated, offering customers an exclusive experience.

Value Propositions, Brand Messaging, and Positioning Statements

One of Apple’s value propositions is the ability to integrate different hardware and software components. The capability offers Apple users a seamless user experience. Despite Apple’s products being expensive, integrating hardware and software components has significantly contributed to reduced costs. An Apple customer can use an iPhone to access Apple Music and cloud storage, which would only be achievable using multiple devices. The company’s brand message is to produce products that enrich people’s lives. The brand message implies that Apple seeks to establish longtime customer loyalty by creating products that respond to their needs.

On the other hand, Samsung’s value proposition lies in its pricing strategy. The company’s ability to offer its diverse customer base varying prices for different products creates the necessary economic flexibility, enabling customers to purchase what they can manage at any time (Jung, 2014). Among the 4Ps, price is an important variable that determines a product’s value. The company’s branding message is designed to maintain customers who believe in Samsung’s smartphones and their powerful specifications. The company also adopts a multi-attribute approach, focusing on smartphone features that suit a customer’s lifestyle.

Competitor Differentiation

Samsung pursues multiple differentiation strategies to gain a competitive edge in a fiercely competitive technology market. One differentiation strategy is that the company focuses on innovation and technological advancement to set itself apart from its competitors (Jung, 2014). For instance, Samsung smartphones stand out from the rest due to the foldable display technology. Such innovativeness attracts tech-savvy customers who prefer devices that stand out.

Additionally, Samsung stands out by leveraging a strong brand image. Samsung positions itself as an innovative and trustworthy company seeking to change customers’ lives through technology and innovativeness (Jung, 2014). This message resonates with customers, enabling the company to stand out in a crowded market. In the same breath, the company understands the importance of effective communication. Unlike Apple, which rarely advertises, Samsung embraces aggressive advertisement campaigns (Jung, 2014). The company shares compelling, personalized stories, helping it create emotional connections with customers.

Overall, Samsung’s differentiation strategy is based on principles of customer-centricity, strong customer relationships, and innovation. The company has built a positive brand image as a responsive firm by understanding customer needs. In this respect, aggressive innovative interventions and the use of advanced technology have helped Samsung maintain leadership in the technology industry.

Critical Evaluation

Apple has a more effective segmentation, targeting, and positioning (STP) strategy. One of the reasons for his verdict is that Apple understands that customers have different needs and wants (Nguyen et al., 2019). Therefore, the company identifies the most attractive market segment and caters to its needs. Apple’s demographic segmentation focuses on age, lifestyle, and jobs. For instance, the company builds PCs with more games for children. In the same breath, PCs with the latest software and features are meant for professionals.

Also, Apple’s targeting of high-end customers offers the company a competitive edge. The company’s primary target market involves people willing to pay more for its products (Nguyen et al., 2019). Apple leverages increased revenue to incorporate top designs, capabilities, and multi-functional features. Similarly, the premium pricing made possible by the target market enables Apple Company to make significant profits even with relatively lower sales volume.

Also, the company’s positioning strategy has enabled it to appeal to its target segment to a maximum extent. Unlike Samsung, which markets itself as catering to the needs of different markets, Apple has selected the high-end market and stuck with it. This approach makes the company appeal to the high-end market since customers see it as focused on solving their core needs. The company has managed to create an emotional connection, which is evidenced by the level of brand loyalty toward Apple. Once a customer purchases an Apple product, one is likely to be a lifetime Apple loyalist.

References

Hoang Tien, N. (2019). International distribution policy comparative analysis between Samsung and Apple. International Journal of Research in Marketing Management and Sales, 1(2), 24–27. https://doi.org/10.33545/26633329.2019.v1.i2a.13

Jung, S. C. (2014). The analysis of strategic management of Samsung electronics company through the generic value chain model. International Journal of Software Engineering and Its Applications, 8(12), 133-142.

Mallin, M. L., & Finkle, T. A. (2011). Apple Inc.: product portfolio analysis. Journal of the International Academy for Case Studies, 17(7), 63.

Nguyen, H., Tien, Nguyen, V., Dat, City, C., Dang, V., Chi, T., Dat, D., Thi, P., & Chi. (2019). Product policy in international marketing comparative analysis between Samsung and Apple. International Journal of Research in Marketing Management and Sales, 1(2), 129–133. https://file.siu.edu.vn/Phongban/KhoahocvaHTQT/cong-trinh-nghien-cuu-khoa-hoc/giang-vien/2019/12/1-2-4-897.pdf

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Overview:
In this assignment, you will analyze and compare the Segmentation, Targeting, and Positioning (STP) strategies of your chosen company from the previous assignment and its largest competitor. The goal is to deepen your understanding of how different companies approach their markets, identify key customer segments, and position themselves against competitors to gain a competitive edge.

Objective:

• Compare and contrast the segmentation, targeting, and positioning strategies of the company you analyzed in the previous assignment and its largest competitor.
• Develop a clear understanding of how each company identifies its customer base and differentiates itself in the market.
• Enhance professional writing skills by presenting a structured and data-supported comparative analysis.

Assignment Guidelines:

1. Segmentation Comparison:
   • Identify and describe the key market segments for both companies (demographic, geographic, psychographic, behavioral, etc.).
   • How do these companies break down their market segments? Are there any significant differences in how they approach segmentation?
   • Discuss any commonalities or notable distinctions in their segmentation strategies.
2. Targeting Comparison:
   • Compare the targeting strategies of both companies. Which segments do they prioritize, and why?
   • Discuss the similarities and differences in how each company chooses its primary and secondary target markets.
   • How do their targeting strategies influence their product offerings and marketing messages?
3. Positioning Comparison:
   • Analyze the positioning of both companies. How does each brand want to be perceived by its target audience?
   • Compare their value propositions, brand messaging, and positioning statements.
   • How does the competitor differentiate itself from your chosen company? Discuss positioning maps or other tools to illustrate the competitive landscape.
4.  Critical Evaluation:
   • Which company has a more effective STP strategy, and why?
   • Identify strengths and weaknesses in each company’s approach, and suggest potential improvements.
   • How do external factors (such as industry trends, technology, or consumer preferences) influence the companies’ STP strategies?
     

     Comparative Analysis of Segmentation, Targeting, and Positioning (STP) Strategies

Deliverables:

• Length: 1,925-2,000 words
• Format: Professional comparative analysis (APA format, double-spaced, 12-pt font)
• Research Requirements: At least 3 credible sources (e.g., academic journals, industry reports, news articles)\

Evaluation Criteria:

• Application of STP Concepts: Demonstration of understanding and application of segmentation, targeting, and positioning theory to real-world examples. (60%)
• Critical Thinking: Ability to compare/contrast and evaluate the effectiveness of each company’s strategy, identify gaps, and propose improvements. (20%)
• Professional Writing: Clarity, structure, grammar, and proper APA formatting. (20%)