3. STP

• Market segmentation is the process of dividing a heterogeneous market into distinct homogeneous groups that have similar needs and respond similarly to a marketing program.
• The four characteristics of market segmentation are: individuals/businesses within the segment should be homogeneous, the segment should be different from other segments, the segment should be large enough, and it should be reachable through some type of media or channels of distribution.
• Mass marketing is a targeting approach where branding is important and generic products are sold.
• One product one marketing mix is a targeting approach where products serve basic needs and generic products are sold.
• Differentiated marketing is a targeting approach where unique products are provided for each customer segment and investment is made in imagery and performance, with low needs being satisfied.
• Niche marketing is a targeting approach where one segment is served the best, investment is made in imagery and performance, and real needs and behavior of customers in the market are considered.
• Micro marketing is a targeting approach where the more customers use a product, the better the brand can serve them, and resonance is achieved, similar to mass marketing, but the more people use it, the more differentiated the product becomes.
• Positioning occurs in the customer mindset, brands via communication, positions the superior benefit of a brand in the customer mindset.
• Positioning by product attribute is a strategy where a unique feature is provided to the consumer which the competition currently does not possess.
• Positioning by benefits is a strategy that focuses on the functional benefits that a product offers.
• Positioning by price is a strategy where the benefit that brands provide to customers is low price.
• Positioning by quality is a strategy that reflects the image of a high quality brand where price is considered secondary.
• Positioning products users is a strategy by associating a brand with a particular user or group of users.
• Positioning emotional benefit is a strategy where the intangible benefits a brand provides to its consumers if they possess a brand.
• Positioning by product class can be done if two products lie in the same product class, and it mainly uses sales promotion as tools.
• Positioning by competitor is a strategy that focuses on communication how a brand’s benefit is different or better than other competition within the same product category.
• Positioning by brand character is a strategy by associating a brand with a meaningful brand character, the brand can easily make consumers understand the positioning of a brand and how it different from others.