#3 STP (Segmentation, Targeting, Positioning)

Question 1

6 Steps of STP

Answer 1

1. Identifying bases for segmenting the markets
2. Develop profiles of resulting segmentations
3. Develop measures of segment attractiveness
4. Select target segments
5. Develop positioning for each target segment
6. Develop a marketing mix for each target segment

Question 2

1.1 Levels of Segmentation

Answer 2

1. Mass Marketing
2. Segment Marketing
3. Niche Marketing
4. Micromarketing
   - Local marketing
   - Individual marketing

Question 3

1.2 Types of Segmentation

Answer 3

GDPBBS

1. Geographic
2. Demographic
3. Psychographic (social class, lifestyle, personality)
4. Behaviour (occasions, benefits, user rate etc.)
5. B2B Markets (operational, purchasing approaches, situation factors etc.)
6. Segmenting international markets (geographic, cultural, economic, political, Intermarket segmentation)

Question 4

1.3 Requirements for effective segments

Answer 4

MASDA

1. Measurable
2. Accessible
3. Substantial
4. Differential
5. Actionable

Question 5

2.1 Evaluation of Market Segments

Answer 5

1. Segment size and growth
2. Segment structural attractiveness (porter’s 5)
3. Company objectives and resources

Question 6

2.2 Market Coverage Strategies - WHAT AND HOW

Answer 6

1. Undifferentiated Marketing
   - focus on common need rather than different customers
2. Differentiated Marketing
   - different mix for different segments
3. Concentrated Marketing
   - specialise, target one

RPLMC

• company’s resources
• product variability
• product’s stage in the life cycle
• market variability
• competitor’s strategies

Question 7

2.3 5 Patterns of Target Market Selection

Answer 7

MENTAL IMAGE OF BOXES!!!!

1. Single-segment concentration
2. Selective specialization
3. Product specialization
4. Market specialization
5. Full market coverage

Question 8

3.1 What is product positioning?

Answer 8

The way the product is defined by consumers on attributes – the place that the product occupies in the consumer’s mind relative to competing products

Question 9

3.2 Steps to choosing a positioning strategy

Answer 9

1. Identify possible competitive advantage
2. Select the right competitive advantage
3. Select an overall positioning strategy (e.g. more for more, the same for less)

Question 10

3.3 What are the possible competitive advantages

Answer 10

1. Product differentiation
2. Service differentiation
3. Image differentiation
4. Personnel differentiation