SEGMENTING, TARGETING, POSITIONING

“THE ERROR OF STP IMPLEMENTATION IN SPORTINDO

STORE PURWOKERTO”

FATIHA RAHMALINA FITRI

MARKETING CONCENTRATION; MANAGEMENT INTERNATIONAL

CLASS PROGRAM; ECONOMICS AND BUSINESS FACULTY;
UNIVERSITY OF JENDERAL SOEDIRMAN; 2016
 CHAPTER I

INTRODUCTION

A. Case Background

The various human need forced businessman to create innovation in

marketing their product in order to accepted by society in the right way. Human
needs aren’t only foods, clothes, etc but also sport activites that human doing
nowdays. When human doing sports, they need some stuffs to support its activity

This thing become business chance that’s taken by Sportindo to looking

for different market than other competitors in fashion field. Taking this business
chance is quite good because business competition is tight and market target is
common done by businessman to promoting its product.

Marketing is unmissed activity in business. Target market selection is a

must to be thoughtful to maximize profit that will be gained. In this case,
marketing has the important role to attract customers. Marketing is the most
human activities are geared to meet and satisfy the needs and wants through an
exchange process. (Sofjan Assauri, 2002, page. 5)

Sportindo create new market target by taking group of sports lover which
is at the time hard to find sport stuffs around Purwokerto. By this way, Sportindo
can minimalize tight competition and can gain more profits rather than other
competitors and also can be more focus to fulfill customers’ needs and wants.

B. Problem Statement

Creating different market target is a good beginning to be done by

busineesman to avoid tight competition with competitors. But this decision needs
support by right strategy and put customers’ awareness on their mind of products
that’s provided.

Sportindo had success to put customers’ awareness with sport products

from clothes until shoes. However, time by time, Sportindo has deviated from its
purpose in the beginning as store that provide sport needs. Today, Sportindo
provides kinds of fashion even hijab on there. Eventough Sportindo still mantain
even increase the number of customers, but customers’ awareness still questioning
about what concept that’s purposed by Sportindo to marketing products.
 CHAPTER II

LITERATUR REVIEW

A. Background Theory

Different consumers have varying desires and interests: witness the

extensive array of products on supermarket shelves. This variety stems from
diverse buying practices and basic variations of customers' needs and the benefits
they seek from products. It is almost impossible to satisfy all customers in a
market with a single product or service.

That is why most companies nowadays not focusing on selling one product
yet they market various product in one market segment. Like for example in our
case study“sportindo”, the name itself stated what kind of shop it is howeverthe
shop now not only selling sport stuffs itself yet it also extended to sold other
different product such as fashion for women, hijab and etc.

The main objectives we want to find out about this research is why STP
strategy is seen as a key to successful marketing, and about the case why
sportindo now don’t focus on sport products but also has other different products.
Same apply to other companies.

Next, for company like sportindo to be successful there must be a good

Segmenting, Targeting and Positioning. The question itself is where does that
error face by sportindo exist? Whether in Segmenting, Targeting or in Positioning.
A company may face errors or problems like this if there is no proper Segmenting,
Targeting or Positioning.That is whyalmost any marketing textbook will tell you
that the key to successful marketing can be summed up by the STP strategy—that
is, segmentation, targeting, and positioning.

KEYWORDS; Segmentation, Targeting and Positioning

B. Journal Review

Title :

1. Segmentation, Targeting, Positioning and Strategy of Radio Company in

Kendari, Southeast Sulawesi
2. Segmenting and Targeting Your Market: Strategies And Limitations
Method Used

Both journal are using Qualitative method in gathering information which

involve describing in detail specific situation using research tools like interview,
survey, and observation. Purposely because they want to gain an understanding of
underlying reasons, opinions, and motivations. Not only that but also it provides
insight into the problem or helps to develop ideas or hypotheses for potential
quantitative research.Finally using this method helps them to uncover trends in
thoughts and opinions and etc.

All marketing is built on STP – Segmentation, Targeting and Positioning

(Kotler & Keller, p.310). In the chapter of fundamental marketing concepts,
trends, and tasks it says: “A marketer can rarely satisfy everyone in a market. Not
everyone likes the same cereal, hotel room, restaurant, automobile, collage or
movie. Therefore, marketers start by dividing up the market into segments”
(Kotler & Keller, 2005, p.24).

Segmenting: All marketing is built on STP – Segmentation, Targeting and

Positioning (Kotler & Keller, p.310). In the chapter of fundamental marketing
concepts, trends, and tasks it says: “A marketer can rarely satisfy everyone in a
market. Not everyone likes the same cereal, hotel room, restaurant, automobile,
collage or movie. Therefore, marketers start by dividing up the market into
segments” (Kotler & Keller, 2005, p.24).

Targeting: Targeting is the next step in the sequential process and

involves a business making choices about segment(s) on which resources are to be
focused. Targeting is the actual selection of the segment. "A set of buyers sharing
common needs or characteristics nonprofit organization being studied (Shelley
and Polonsky, 2002) so the applicability of these results across that the company
decides to serve." Companies use target marketing to tailor for specific markets.
Decisions to target the market are based on market maturity, buyer diversity,
needs and preferences, the strength of the competition and the volume of sales
(Gould, 2008). Targeting allows companies to focus more on the specific needs of
the targeted segment with regard to price, desire, prestige and habits.

Positioning: Positioning is the act of designing the company’s offering

and image to occupy a distinctive place in the mind of the target market (Kotler &
Keller, 2005, p.310). Positioning is not something that you do with the product,
positioning is what you do to the mind of the prospect. That is, you position the
product in the mind of the prospects. This is described in the book Positioning
(Ries & Trout, 2006), who claims that the market place today is an
overcommunicated society where there is too much of information
communicating its offer (Ries & Trout, 2006, p.6). This is the reason of why
we need positioning. We need positioning to be successful in communicating our
message on the market place in the overcommunicated society.

Journals

The key point regarding segments is that to be useful, the segment

groupings must contain consumers who are similar to one another and distinct
from the consumers in other groups with respect to their responsiveness to your
potential marketing offerings and appeals (Dickson & Ginter, 1987, p.1-10)

Kotler, Kartajaya, Huan and Liu (2003) states there are three criteria that
must be met when evaluating companies and determine which segments will be
targeted. First, the company must ensure that the targeted market segment is quite
large and would be quite beneficial for the company. Companies can only choose
a small segment at the present time but that segment has a favorable future
prospects. In connection with this the company must review the existing
competition in the sector and its potential to grow as it would relate well to the
size and growth of the target segment of the company.

The second is that the targeting strategy must be based on the competitive
advantage of the company concerned. Competitive advantage is a way to gauge
whether the company has sufficient strength and skill to master the market
segments selected so as to provide value for consumers. To generate superior
value is not enough to simply have sufficient resources but must be supported by
capabilities, core competencies, and competitive advantage to carry out the
differentiation that is aimed at winning the competition.
 CHAPTER III

CONCLUSION

If you are entering a new or underdeveloped market, the STP strategy will
offer you a strategic advantage over competitors. This focus will allow you to
better and more effectively meet the needs of the target segments than can
competitors who are going after everyone (or no one in particular). We’ve turn to
find out that its true, STP strategy is a key to successful marketing where it gives
company opportunity to see who their best target market audiences are,not only
that but also it keep the organization allocate their available resources effectively
and efficiently over time even though some criticism goes against the STP
strategy.

Sportindo engages in selling other products because they want to generate

more customers and they think it helps the customer to shop for various products
in one shop. However the only error that sport indo have is the name of the
company itself, they should reposition there product and the name of their
company or shop in order for the customer to have a clear understanding on the
companies’ products. That is why we stated earlier that proper segmenting,
Targeting, and positioning help the company success alone side with the clear
STP strategies.

In this research is more likely to be emphasis and the study of the

Segmentation, Targeting, Positioning and strategy of Sportindo are more focused
on the expectation of customers that belong in sports not to all parties especially
others target market. Therefore in the future are expected to study the
development of empirically by expanding the indicators used in particular
measurements of Marketing Strategy practices that include all parties. Finally, the
suggestions that can be expressed by researchers on behalf of the other
competitors.
Recommendation

Marketing that offering by Sportindo already reached by society in

Purwokerto, but the problem of STP might need to be changed in order to put the
right brand image in customers’ mind.

Based on this research, we took some recommendations for Sportindo

Store related with its Segmenting, Targeting, and Positioning :

1. Sportindo might difficult to change the name, but it can open new
division to provide stuffs out of sport fashion such as, Sportindo Kids,
Sportindo Women, etc.
2. Idea to open subdivison of Sportindo could be implemented as one
stop shopping where customers found what they want easily only in
one place.
3. Target of market that we know is for people who active in sport, and
we see from the reality right now, it’s better to change the target for
middle above ages that like wear casual fashion with lower price rather
than other competitiors.
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