Module 6 Segmentation, targeting and positioning Flashcards
Whaty is STP strategy?
Segmentation, targetting and positioning.
What are the 5 steps in the process of STP?
- Establish overall strategy of objectives.
- Segmentation methods
- Evaluate segment attractiveness
- Select target market
- Develop positioning strategy
What are the 2 steps in segmentation?
- Establish a strategy or objective.
- Segmentation methods
What are the 2 steps in targetting methods?
1.Evaluate segment attractiveness?
2. Select the target market.
What is the 1 step in positioning?
Identify and develop a positioning strategy.
What are the 5 segmentation methods?
- Geographic (continent, region, country state)
- Demographic (Age, genre, income)
- Firmographic (For business-to business: company size, number of employees)
- Behavioural (purchase usage consumption)
- Psychographic (lifestyle, self-concept, self-values)
What are the 5 steps in evaluating segment attractiveness?
- Substantial
- Reachable
- Responsive
- Profitable
- Identifyable
What is an identifyable segment evaluation?
- Are the segments DISTINCT from each other.
- Firms must be able to identify who is within their market to be able to design products or services to meet their needs.
- Ensure that the segments are distinct from one another
What is a substantial segment evaluation?
- Are the segments LARGE enough to generate profits?
- If a market is too small or its buying power insignificant, it won’t generate sufficient profits or be able to support the marketing mix activities.
- Size of market does not really matter under certain circumstances
- Despite its small size, the market for the original HUMMER was incredibly profitable and therefore was substantial
What is a reachable segment evaluation?
- It must be ACCESSIBLE through persuasive communication and product distribution.
- No matter how identifiable or substantial the target market is, if that market cannot be reached through persuasive communications and product distribution.
- Internet has enabled more people to be reached more easily various areas around the world simply cannot be served unaccessible to marketing messages or
because there isn’t adequate distribution.
What is a responsive segment evaluation?
- It must have consumers in it that will react similarly and positively.
- Nike is very successful at selling sports-related goods.
- Consider if consumers would accept personal care products from Nike. Why or why not?
What is a profitable segment evaluation?
- It must have the potential to be profitable via market growth, competiveness and access.
- Firms in financial services and housing understand that it provides a new potential market but the debt levels this segment carries makes it difficult to target effectively.
What is the key factor when selecting a target market?
The key factor likely to affect this decision is the marketer’s ability to pursue such an opportunity or target segment.
In general, a company matches their competencies with the attractiveness of target markets
Hallmark looks at geographic segmentation when building new stores.
They also use benefit segmentation for their online cards..
What are the 4 different segmentation strategies?
- Differentiated targeting strategy
target several market segments with a different offering for each. - Concentrated targeting strategy
selects a single, primary target market and focuses all its energies on providing a product to fit that market’s needs, it is using a - Micromarketingorone-to-one marketing
tailors a product or service to suit an individual customer’s wants or needs, it is undertaking an extreme form of segmentation called. - Undifferentiated or mass marketing
For example:
Differentiated = Coca-Cola
Concentrated = Clinique
Microtargeting = Financial services providers
What is positioning?
Positioning refers to
the process of defining the marketing mix so that target customers have a clear, distinctive, desirable understanding of the product in comparison to competing products.
What is developing a positioning strategy?
Firms thus position their goods and services according to value, salient attributes and symbols, and against competition
What are the positioning steps?
- Determine consumer’s perceptions and evaluations of competitors.
- Identify the markets ideal points and size
- Identify competitors positions
- Determine consumer preferences.
- Select the position
- Monitor the positioning stratgey
