SEGMENTATION, TARGETING AND POSITIONING

The STP process (segmentation, targeting and positioning) is undertaken by marketers in order to have a better understanding of consumer needs so that a more effective marketing strategy can be developed. In this exercise, a total ofsix different market segmentsfor thefitness center markethave been provided, as shown in the following diagram:

QUICK OVERVIEW OF EACH MARKET SEGMENT

Making friends

A group of consumers who are less interested in the fitness benefits provided by a gym. In this case, the "making friends" market segment sees fitness centers as an opportunity to mix with people with similar goals and lifestyles and to make new friends. These consumers are probably moderately fit and enjoy some of the fitness activities, but their prime motivation is to fulfill their social needs.

Losing it

The next market segment is "losing it", which refers to the goal of losing weight. It is quite common for some gyms and fitness centers to specialize in weight loss programs and overweight people perceive that regular exercise is important for them to participate in.

Taking shape

The "taking shape" market segment consists of consumers who are primarily interested in improving the look of their body, perhaps through bodybuilding and weight training, as well, as forms of body sculpture. Typically this segment is comprised of a younger demographic, but has an equal mix of males and females. This market segment is interested in both the facilities offered - in terms of weight training equipment - and suitable exercise classes that support their goals.

Peak performers

Consumers in the "peak performers" segment are highly disciplined and self-motivated individuals when it comes to their health and fitness. They are highly focused upon achieving their personal best, in terms of running times, endurance, weight lifting, bodybuilding and so on.

Health requirements

Consumers in this particular market segment attend a fitness center because they are trying to improve their health, strength, or because of "doctor's orders". They typically do not overly enjoy exercise programs, perhaps seeing it as a chore.

Sports focus

The last market segment in this example are those consumerswho are heavily involved in sport, perhaps at competitive level, and use a fitness center to help improve their strength and general fitness in order to participate in their chosen sport.They are generally quite motivated and are looking for exercise classes and equipment which are supportive of their particular sporting requirements.

Discussion Questions

1.Review the above market segments and identify which segments would make attractive target markets for fitness centers. Why do you think these would be the most attractive target markets?

2.Using your list of target market/s, identify how the fitness center should be structured (in terms of facilities, equipment, classes, design, staff, location, and so on) to meet the needs of your target market/s.

3.Do you think it would be possible to target multiple target markets with the one fitness center, or should you look to specialize and target one customer segment only? Why?