From Market Segmentation to Marketing Mix (Fitness Centers) The STP process (seg

Question

From Market Segmentation to Marketing Mix (Fitness Centers) 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, six different market segments for the fitness center market are provided, as shown in the following diagram: Quick Overview of Each Market Segment Making friends 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. Losing it The next market segment is “losing it”, which refers to the goal of losing weight. Taking shape The “taking shape” market segment consists of consumers who are primarily interested in improving the look of their body. 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. Health requirements Consumers in this market segment attend a fitness center because they are trying to improve their health, strength, or because of “doctor’s orders”. Sports focus This segment are those consumers who are heavily involved in sport and use a fitness center to help improve their fitness in order to participate in their chosen sport. Discussion Questions 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? 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. Do you think 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?

Explanation / Answer

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?

The success of the fitness center will be realized only if it can provide value to its customers in a continuous manner. For example, consider these two segments - "taking shape" and "losing weight". These customers will definitely join the fitness center with a high hope but eventually will lose interest when their goal is fulfilled i.e. when they have lost adequate weight or have come to "shape". The segment "making friends" wants a value which perhaps does not go with the capability of the fitness center. A fitness center may not be the best place to provide a platform to create new friends. The rest three segments are workable. Both the “peak performers” and "health requirements" customers can be sustained for a long period of time by satisfying the values searched by them. Similarly, "sports focus" is a specialized area and if the fitness center can develop its capability in this area, it can definitely retain its customers and also can get new customers.

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.

Since we have identified three target markets, its now time to concentrate on one or more of them based on the capabilities and resources the fitness center have. We don't believe that with the existing resource and capability (presumably a new fitness center it is), it is possible to gain and retain the confidence of a Sportster because there the requirement can be highly technical in nature. Therefore, we select the other two segments “peak performers” and "health requirements". To satisfy the needs of these customers, the facilities should, first of all, have a healthy space. Both the segments are trying to establish discipline and hence the timing of the facility should match their requirement. In other words, the classes and facilities must be available exactly at the time when they need them. The staffs and members of the facility should be hired in a manner that can fulfill the guidance requirement based on health improvement of these customers. The facilities should be strategically located in the vicinity of workplaces/ healthcare centers because when people will get the 'doctor's orders', they will start searching a facility in the nearby place. Also, there can be many facilities planned to support the discipline of coming and leaving the facility from the respective residences of the customers.

Do you think 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?

As we have mentioned earlier, we don't believe that with the existing resource and capability, it is possible to gain and retain the confidence of a Sportster because there the requirement can be highly technical in nature. Thus we have chosen the two segments who have overlapping needs for health improvement.

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