Nvidia Segmentation, Targeting & Positioning
Nvidia segmentation, targeting, and positioning (STP) is a strategic approach to marketing that involves dividing the market into smaller groups of consumers (segmentation), selecting one or more of these groups to target with a specific marketing mix (targeting), and then positioning the product or service in the minds of consumers in a way that differentiates it from the competition (positioning).
Nvidia uses the following types of product positioning.
– Anticipatory positioning. Anticipatory product positioning is a strategy in which a company positions its products or services in a way that anticipates future trends or needs in the market. Nvidia has used this strategy effectively by positioning its products in a way that anticipates the increasing demand for high-performance computing solutions and emerging technologies such as artificial intelligence and autonomous vehicles.
For example, Nvidia recognized in early 1990s the potential of AI and positioned its products accordingly, investing heavily in research and development to create GPUs that are specifically designed to accelerate AI workloads. As a result, Nvidia has become a key player in the AI market, with its GPUs powering many of the most advanced AI applications in industries such as healthcare, finance, and automotive.
– Quality product positioning. Quality product positioning is a strategy in which a company positions its products or services as high-quality, reliable, and superior to those of its competitors. Nvidia has used this strategy effectively by emphasizing the quality and reliability of its products and by investing in research and development to continually improve its offerings. Accordingly the company creates high-performance GPUs for a wide range of applications, from gaming to data centre workloads.
The following table illustrates Nvidia segmentation, targeting and positioning:
| Type of segmentation | Segmentation criteria | Nvidia target customer segment |
|
Geographic |
Region | Taiwan, China, United States, other countries |
| Density | Urban | |
|
Demographic |
Age | 16 – 65 |
| Gender | Males & Females | |
| Life-cycle stage | Bachelor Stage, Full Nest, Full Nest II, Full Nest III, Empty Nest I,
Solitary Survivor II |
|
| Occupation | Students, employees & professionals | |
| Behavioral | Degree of loyalty | ‘Hard core loyals’
‘Switchers’ |
| Benefits sought | Performance & reliability | |
| Personality | Determined & ambitious | |
| User status | non-users, potential users & regular users | |
| Psychographic | Social class | Upper class |
| Lifestyle[1] | Aspirer, Succeeder, Explorer, Reformer | |
| Risk aversion | Risk loving |
Nvidia segmentation, targeting and positioning
Nvidia Corporation Report contains the above analysis of Nvidia segmentation, targeting and positioning and Nvidia marketing strategy in general. The report illustrates the application of the major analytical strategic frameworks in business studies such as SWOT, PESTEL, Porter’s Five Forces, Value Chain analysis, Ansoff Matrix and McKinsey 7S Model on Nvidia. Moreover, the report contains analyses of Nvidia leadership, organizational structure and organizational culture. The report also comprises discussions of Nvidia business strategy, ecosystem and addresses issues of corporate social responsibility.
[1]According to Cross Cultural Consumer Characterization by Young & Rubican