STP Strategy

• What is segmentation in marketing?

  A group of customers with similar characteristics
• What are the four criteria for segmentation?

  Identifiable, quantifiable, accessible, and able to pay
• What are profile variables in market segmentation?

  Facts about the consumer
• What are psychographic variables in market segmentation?

  Individual aspects of the consumer
• What are behavioral variables in market segmentation?

  The relationship between consumer and brand
• What are the types of profile segmentation?

  • Demographic
  • Geographic
  • Geo-demographic
• What are the types of psychographic segmentation?

  • Lifestyle
  • Activities/interests
  • Personality
• What are the types of behavioral segmentation?

  • End use
  • Benefits sought
  • Usage rates
• What does the STP framework stand for?

  Segmentation, Targeting, Positioning
• What is the purpose of segmentation in the STP framework?

  Identify and describe market segments
• What is the purpose of targeting in the STP framework?

  Evaluate segments and decide which to pursue
• What is the purpose of positioning in the STP framework?

  Design a product to meet segment needs
• What are the strategies for target marketing?

  • Undifferentiated marketing
  • Differentiated marketing
  • Customised marketing
  • Focused/concentrated marketing
• What is undifferentiated marketing?

  Assumes a homogenous market with one mix
• What is differentiated marketing?

  Targets multiple segments with different mixes
• What is customised marketing?

  Traditionally used in B2B markets
• What is focused/concentrated marketing?

  Targets niche markets with specialized knowledge
• What is product positioning?

  Place occupied in a market as perceived
• What is market mapping?

  • Visual representation of market segments
  • Helps identify competitors and market gaps