Consumers have different needs and tastes, and the market approach does not meet unique requirements and aspirations. Although every consumer is different, many of them have similar characteristics. This is why the FSP approach is beneficial. Explanations!
Advantages of the FSP approach
When creating a company, we must establish very clearly who our target market is and, within it, the different specific niches. This will help us create the marketing objectives and strategies that will allow us to access these customers and generate the necessary sales.
An approach based on segmentation, orientation and positioning will allow you to gain a competitive advantage by identifying and satisfying common needs and desires.
Segmentation consists of identifying and grouping potential customers according to their needs and characteristics. There are a thousand ways to group customers, but some are more appropriate than others for a particular product or service. Age, purchasing power, socio-cultural factors and lifestyle are some of the criteria that can be used.
What is interesting about market segmentation is that it makes us think about the needs of market segments and how we can meet that specific need.
For segmentation to be effective, it must be measurable, accessible, sufficiently broad, differentiable and achievable, i.e. it must be possible to design effective attraction programs as a group.
After identifying the different groups that constitute a target market, some seem more promising than others. Some groups may be more profitable, more likely to be attracted to the product or service being offered or more neglected by competitors. Targeting is the selection of groups on which resources will be focused.
It is therefore a question of selecting from among all these segments, the one or ones that interest us, according to criteria of sectoral value and proximity to our business idea, evaluating their characteristics and studying their needs, to transform our value offer into something that interests them.
For effective targeting, certain rules must be respected:
- it must be compatible with the company’s values,
- there must be a match between the market opportunity and the company’s capacity and resources, sufficiently profitable and with skill levels accessible to the company’s resources.
Segmentation and targeting make no sense if they do not result in the development of products, services or campaigns specifically tailored to the preferences of the selected groups.
Positioning involves creating an image with which customers can identify, based on product characteristics, quality and promotions, among other factors.
For each of the targets a specific Marketing Mix must be established and a marketing campaign that will allow us to position the company’s offer on the market
Each product or service is perceived by customers differently from competitors’ products or services. These perceptions and impressions must not be left to chance, which is why the company must generate a strategy through its marketing mix, to place its offer in the most advantageous position for the company.
We can position our products according to characteristics such as:
- the low price,
- the production speed,
- the quality of service,
- a mixture of these characteristics,
and each company must differentiate its offer with a unique mix of attributes.
The process of segmentation, orientation and positioning results in a better understanding of the customer’s needs and wishes. This allows for greater responsiveness in terms of products and offerings, resources can be focused on creating competitive advantages relevant to the target market.