Marketing: segmentation, targeting and positioning

• What does STP stand for in marketing strategy?

  Segmentation, Targeting, Positioning
• When developing a marketing strategy, businesses must consider which customers they want to target
• Market segmentation involves identifying different parts of the market based on customer similarities.
• What is the primary goal of market segmentation?

  To focus marketing efforts
• Household income is an example of income segmentation.
• Behavioral segmentation is based on how consumers behave.
• What is a key issue with market segmentation?

  Segments are fast-changing
• Match the targeting strategy with its description:

  Mass marketing ↔️ Targets the whole market

  Differentiated targeting ↔️ Targets multiple segments

  Niche marketing ↔️ Targets a small, profitable segment
• What is the main advantage of niche marketing?

  Building a strong market position
• The essential part of market positioning is the value proposition.
• Market positioning should be based on the customer's perspective, not the business's.
• What does a positioning map aim to identify?

  Gaps in the market
• Steps in the STP process

  1️⃣ Market segmentation

  2️⃣ Targeting

  3️⃣ Market positioning
• A competitive advantage can be achieved by offering superior value from the customer's perspective.
• What is one possible positioning strategy for a product?

  More value for low price
• Positioning strategies should focus on understanding how customers perceive value.
• The STP model is a dynamic and widely used framework for marketing strategy.