STP Process

Question 1

STP Process

Answer 1

Market Segmentation
Target Market Selection
Positioning

Question 2

Compared to a large, heterogeneous market, homogeneous segment…

Answer 2

…can be served more effectively and efficiently

Question 3

Types of Segmentation

Answer 3

1. Benefit

2. Observable characteristics of consumers

Question 4

Segmentation Process

Answer 4

understand benefits —> create customer profile —> find observable variables most likely to discriminate among benefit segments

Question 5

Target a Market…

Answer 5

…in which the firm has a competitive advantage.

…consistent with organizational goals and image

…consistent with resources

Question 6

A Positioning Statement Answers…

Answer 6

…Who are the customers?
…What is the set of needs the product fulfills?
…Why is the product the best option to satisfy those needs?

Question 7

Vertical Positioning

Answer 7

If all buyers agree A is of greater quality than B, at the same level of price, everyone would buy A and nobody would buy B.

Question 8

Horizontal Positioning

Answer 8

A and B differ in ways independent of buyers’ overall judgements.

Some people prefer A while others prefer B, at the same price.

Question 9

Marketing Techniques by Segment

Answer 9

mass marketing
differentiated marketing (by segment)
niche marketing

Question 10

6 Principles of Effective Positioning

Answer 10

1. Relevance
2. Clarity
3. Coherence
4. Commitment
5. Patience
6. Distinctiveness

Question 11

Effective Segmentation

Answer 11

MASDA
Measurable
Accessible
Substantial
Differentiable
Actionable