STP - Lecture 4

Question 1

market segmentation

Answer 1

markets are not homogeneous so it makes commercial sense to differentiate marketing offerings for different customer groups

Question 2

how do customers differ

Answer 2

customers differ in the benefits wanted, the amount they are able and willing to pay, the media they see and the quantities they buy

Question 3

why segment markets

Answer 3

better matching of customer needs, enhanced profits

Question 4

arguments to resist segmentation

Answer 4

additional costs of producing multiple offerings, small volume compared to current mass-market offer, additional brand cannibalise sales from current product

Question 5

ways of segmenting

Answer 5

geographic segmentation, demographic, psychographic

Question 6

advantages of geographic (ways of segmenting)

Answer 6

easy to define and measure, info often available from public sources

Question 7

disadvantage of geographic (ways of segmenting)

Answer 7

even with small areas there is a wide variety of wants and needs

Question 8

what is demographic segmentation

Answer 8

by age and gender

Question 9

advantages of demographic (ways of segmenting)

Answer 9

easy to define and measure, info available from public sources

Question 10

disadvantages of demographic (ways of segmenting)

Answer 10

purely descriptive

Question 11

what is psychographic segmentation

Answer 11

activities, interests, opinions, psychographic demographics (education, income, occupation, family size)

Question 12

micro segmentation bases

Answer 12

start with demographic profile of customer then develop increasingly fine detail by working through operating variables, purchasing approach, situational factors and finally personal characteristics

Question 13

macro segmentation bases

Answer 13

size, location, usage rate (heavy or light), product or service application (glass for use in architecture or motor industry

Question 14

criteria for successful segmentation

Answer 14

distinctiveness, tangibility, accessibility, defendability

Question 15

undifferentiated targeting d

Answer 15

firm directs the same marketing mix (price promotions etc) at all potential customers

Question 16

differentiated targeting d

Answer 16

firm offers unique marketing mix to each distinct segment, a mix tailored to the needs and wants of consumers in those segments

Question 17

concentrated targeting d

Answer 17

picks out a single segment or very limited number of similar segments on which to concentrate its efforts

Question 18

positioning

Answer 18

process of designing an image and value so that consumers within target segment understand what the company or brand stands for in relation to its competitors

Question 19

marketing mix d

Answer 19

tactical detail of positioning strategy

Question 20

example of marketing mix

Answer 20

pursuing high quality position needs to be reflected not just in quality of product but in every element of mix, price, style of advertising and after sales service

Question 21

what is segment marketing

Answer 21

marketing to certain groups within the market

Question 22

example of product with clear profile of customer (STP)

Answer 22

magazines tend to have readers that are clearly defined by gender, age bands

Question 23

what is the process of stp *

Answer 23

separate the market into segments,
targeting is choosing which segment to go for based on attractiveness (separate card on this),
positioning is changing the marketing mix to appeal to the chosen segments

Question 24

how are segments evaluated *

Answer 24

each segment is analysed to see if good, 4 characteristics distinctiveness, tangibility, accessibility, defendability

Question 25

what is the marketing mix (to do with STP)

Answer 25

tactical detail of positioning strategy

Question 26

Example of a market nicher

Answer 26

Sky sports premier league or golf

Question 27

Example of a market nicher

Answer 27

Sky sports premier league or golf