An STP model is necessary to implement the SBU for UCW in California successfully. It helps segment the Californian market. In the next approach, targeting is done on the select customer segments through the identified marketing campaigns that are tailored to match the preferences of the respective segments. Finally, the position is done based on the expectations and desires of the specific targets (Khandelwal et al., 2020). Therefore, the entire customer base in California is broken down into smaller groups, making it more accessible to implement specific marketing strategies to reach and engage the target audience.
Personalization and retention hugely influence the decision to enroll at the SBU. Through Segmentation, targeting, and positioning, UCW will be able to better understand who their ideal customers are and how to get to them. With more personalized and targeted marketing efforts, UCW is set to bring up the SBU in California successfully. Thus, we develop the Segmentation, targeting, and position for the university’s SBU in California.
Segmentation
When it comes to Segmentation in market planning, the goal is to develop customer segments based on the selected traits and criteria (Khandelwal et al., 2020). Thus, the Segmentation based on the four criteria of geographic, behavioural, demographic, and psychographic is as follows;
Geographic Segmentation – entails Segmentation based on the country, State, region, and city. Thus, UCW will go international and set up the SBU in the United States. Specifically, it is to be set up in California, a western US state with about 482 cities. Strategically set along the Pacific, California stretches from the Mexican border and covers about 900 miles, with a total population of about 39 million people.
Demographic Segmentation involves gender, age, occupation, education and income levels (Khandelwal et al., 2020). The SBU is to serve both domestic and international students. Regarding gender, both males and females constitute the customer segment. The minimum age for enrollment at the SBU is 18 years for domestic and international students. However, there is no specific set maximum age limit. This indicates that the customer segment involves individuals studying while working and others who get back to school after their retirement.
When it comes to education, customers must have completed high school education before enrolling in UCW programs. However, that applies to the undergraduate programs the SBU intends to offer. For the post-graduate programs, the students must have completed a bachelor’s degree from recognized institutions in their respective countries of origin. Based on the income levels, students across all the income levels will be allowed to register for placement at the SBU. The UCW financial aid programs, such as scholarships, loans and grants, will facilitate the completion of studies, particularly for below-average earners.
Behavioural Segmentation reflects how often customers buy and what they do. For the SBU in California, students will enroll for short and long courses. It will offer course programs that go for two, four, and five years. Upon completing the graduate programs, students can enroll in post-graduate programs immediately.
Psychographic Segmentation – In light of lifestyles, the customer segment involves individuals with passion and dedication who want to be recognized as academic achievers. Also, it comprises persons whose hobbies include reading and writing. Individuals always perceive education as a key factor for social, economic, and political growth. They recognize how special education is and spend quality time in their lives on studies, research, and professional development.
Targeting
Based on the developed customer segments, international and domestic students ages 18-35 enrolling in graduate programs will most likely generate the desired performance for the SBU in California. The segment is actively growing and comprises a low cost of acquisition and high profitability.
With a median age of 37.9 as of 2022, California is considered to have a massive population of young people enrolling in higher education (Johnson et al., 2017). As the demand in the job market increases, the number of domestic and international students seeking positions for studies at the SBU is expected to increase. While California remains a diverse state with a favourable cost of living, the number of international students in the State is expected to increase. The accommodative nature of the State has allowed an increase in the population of foreigners, constituting a significant population in California.
For young people within the age bracket of 18-35, society is concerned about their future well-being. As a result, the parents/guardians are always willing to spend money on quality education to prepare them for their future. Comparatively, more domestic and international students would be expected to enroll in graduate programs, unlike those enrolling in post-graduate programs. Most post-graduate programs target people who are already employed and, in most cases, over 35 years old.
Similarly, reaching young people domestically and internationally would be considerably more accessible in the world of new technologies such as social media. Their customer acquisition costs (CACs) would be significantly high for the students enrolling in post-graduate programs. As a result, UCW could record low profitability. It is unlike the case for graduate students who find it mandatory to secure a bachelor’s degree in pursuit of their career success.
Positioning
UCW needs to set the SBU in California apart from other private and public universities and colleges. It should be reflected in the minds of the target audience, comprising both international and domestic students.
One of the position strategies that UCW intends to use to stand out in California is symbolic positioning (Amira & Fitriasari, 2021). Having its roots in Canada, which is globally recognized as a country offering high-quality education, UCW will use it to its competitive advantage. The portrayed unique self-image of the SBU will be crucial to positioning. It will be an institution of its own since other private and public universities in California are majorly American.
Also, UCW will use functional positioning (Amira & Fitriasari, 2021). Under its SBU in California, UCW will offer new courses, including education courses for undergraduate and post-graduate programs. Leveraging the advanced technologies available today, such as Augmented Reality and Virtual Reality, UCW will offer full online courses, including virtual practical experiences. Students will only be required to present themselves physically for induction and examinations. It will make it increasingly easy and convenient for students who study while working to manage their tight schedules. Finally, UCW will use the product positioning map, which involves visual displays to compare with competitors (Amira & Fitriasari, 2021). UCW will show the courses offered at uniquely fair costs compared to their competitors.
References
Amira, H., & Fitriasari, N. (2021). Are Segmenting, Targeting, and Positioning Necessary for Strategic Marketing? Jurnal Kedokteran Brawijaya. https://www.academia.edu/download/93505115/776.pdf
Johnson, H., McGhee, E., & Mejia, M. C. (2017). California’s population. Public Policy Institute of California.
Khandelwal, K., Jakhar, T., & Khandelwal, T. (2020). Segmentation, Targeting and Positioning. International Research Journal of Engineering and Technology (IRJET) e-ISSN, 2395-0056. https://www.academia.edu/download/64599402/IRJET-V7I5749.pdf
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