Marketing Decisions - STP Flashcards
What is STP?
Segment, target and position
What does Segment mean?
Divide the market into groups with similar characteristics or needs
What does Target mean?
Decide which market segment to focus on and adapt the product and marketing mix to appeal to this group
What does Position mean?
Position the product in the target customers’ minds so they see it better than the competition
How can you segment demographically?
By age, gender, class
How can you segment geographically?
City or county or country
How can you segment by income?
High and low incomes
Why is segmentation useful?
For identifying new customers, markets and products
What can segmentation cause companies to ignore?
The needs of potential customers
What is a niche market?
Focusing on a small number of customers
What is a mass market?
Focusing on a huge number of customers
What does focusing on niche markets often mean?
That small businesses don’t have to compete directly with larger businesses
What is positioning?
Creating an image of your brand or product in the mind of your target customer.
What are 3 influences on positioning?
State of the market
Company’s current products
Strengths and weaknesses of business
Give 2 things you should consider when picking a segment to target.
How much they are prepared to spend and where they will shop
