Essay Sample on Market Segmentation, Targeting and Positioning (STP) Analysis of ONE Card

Introduction

One Card is a new product created by our research team. The primary purpose of the product is to incorporate all the major gift, credit, membership, debit and transit cards into one card. This idea is meant to eliminate the movement of people across the streets with numerous cards in a wallet. Furthermore, incorporation of all cards into ONE card eases transactions and convenience as one has to carry one ticket for every other operation. Our team, however, believes in working alongside our target group to introduce and build the product for continuous use and embracement in Canada. After all, Canada is known to be at the forefront when it comes to the usage of different payment methods and trends. The country is involved in the use of cash, cheques, debit, credit, and electric funds transfer among other means to pay for available products and services. For our product to gain popularity among the available competitors, we must define our strategic marketing to assist us in obtaining and sustaining a competitive advantage over companies such as Stratos and Fuze. That is, in the current business environment, it is of the essence for a company or an individual to relate the attributes and characteristics of their or his/her products and services to the consumers. Segmentation, targeting and positioning (STP) can, therefore, play a vital role in the understanding of the ONE card product as it is a marketing strategy that involves market segmentation, targeted customers and the positioning of products. The primary aim of this report is to analyze the STP marketing strategy concerning the product, ONE card to assist in describing the plan the product will use to approach the market.

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Analysis of ONE card Segmentation, Targeting, and Positioning

Segmentation is the initial step in the STP marketing strategy. The latter can, however, be defined as the division of a general market into different segments to enhance the distribution of products and services into different sub-groups (Dolnicar, Grun & Leisch, 2018). In segmentation, separate sections are used to represent various target groups of consumers with different needs. Furthermore, different variables are respected as they can play a primary role in the purchasing decisions made by customers. Different variables; demographic segmentation, benefit segmentation, geographical segmentation, and psychographic segmentation can, therefore, be used as marketing approaches for ONE card. The identification of a geographic segmentation, in this case, assists in understanding different needs and wants of customers in different regions. ONE card product majorly focuses on Canada as its market region. This focus, however, assists in the development of adequate and appropriate marketing strategies suited for the selected area. After all, Canadians and other people who live in Canada use various bank cards for different transactions (Tompkins and Galociova, 2018). It is of significance for the cards to be integrated into ONE card for conveniences. Even though ONE card is a new product, its regional approach is believed to be of significance as it can assist in achieving trust and admiration by people within the country.

Apart from geographical segmentation, demographic segmentation can also play a crucial role in representing the customers' needs. Furthermore, demographic segmentation focuses on occupation, sex, age and family among others. ONE card product, in this case, is determined not to divide its potential customers into different demographic variables. That is, the product targets all the users who are interested in it and those that aim at upgrading their cards into a more convenient one. Psychographic segmentation, on the other hand, is about values and lifestyle. ONE card product targets and segregates individuals whose lives are revolving around technology. That is, ONE card uses Near Field Communication Technology for transactions. Finally, benefit segmentation is considered appropriate in identifying the needs of the ONE card customers. ONE card has the capacity of offering customers the best in terms of quality, convenience and time management.

Targeting is the second step of the STP process. The stage is usually followed by different companies after segmentation to indicate which segment they need to focus on depending on its profits, size, growth, and area. According to Dangelico and Vocalelli (2017), targeting market involves the identification of the market segment with a significant advantage over intended competitors. Besides, the success and achievements of a company rely on its ability to focus on the appropriate target market. The target market for ONE card lies within the age limit of 15 to 40 years. This group is highly considered as they consider themselves technology fanatics and lovers of convenient items. Besides, the people in this age limit usually adopt useful products including smartphones immediately they are launched in the market. Teenagers within the ages of 15 and 25 are also targeted as they are considered to be employed. Besides, this age group usually use major cards for different transactions in Canada. Apart from the mentioned age groups, the product still targets every individual that is interested in upgrading their bank cards as most individuals continuously do card transactions despite their age.

Positioning is the last stage of the STP process. It is at this stage that a company decides whether it aims at positioning itself at a strategic place in the market to stand unique (Dangelico and Vocalelli, 2017). Furthermore, the latter has the capacity of influencing a brand image and the customer's taste. ONE card product has to unique marketing plans that will enhance its unique position in the market despite the existence of stiff competition from other companies such as Fuze. The positions include High Specification and Low pricing. This positioning strategy is appropriate as it will ensure that the product stands alone and unique in the market. Based on high specifications, ONE card has an encrypted chip used for saving all the necessary information, a similar card dimension, a 13mAH Lithium-Polymer battery that lasts more than 30 days after charging and a capacity for the storage of 30 cards selected through E-paper display. Besides, the card can use all the significant ATMs recognized by major companies. Apart from the specifications, the product uses low pricing strategies to beat its competitors in the market. Overall, ONE card has can easily survive in the market as it has appropriate marketing strategies that can effectively influence customers.

References

Dangelico, R. M., & Vocalelli, D. (2017). "Green Marketing": an analysis of definitions, strategy steps, and tools through a systematic review of the literature. Journal of Cleaner production, 165, 1263-1279.

Dolnicar, S., Grun, B., & Leisch, F. (2018). Market Segmentation Analysis. In Market Segmentation Analysis (pp. 11-22). Springer, Singapore.

Tompkins, M, and Galociova, V. (2018). Canadian Payment Methods and Trends. Retrieved from https://www.payments.ca/sites/default/files/12-Dec-18/paymentscanada_trendsreport2018_13.pdf