Week 3 - STP

Question 1

What is STP?

Answer 1

• Segmenting, Targeting, Positioning
• A 3-step technique to identify opportunities that are able to drive profitability to certain demographics and can also be broad.
• A process that marketers or businesses use to decide and identify potential market or markets.

Question 2

What is segmentation?

Answer 2

The need to identify groups and sub-groups within a bigger target market.

Question 3

Identity Basis for Segmentation

Answer 3

• Dividing the market into distinct groups of customers
• Determine important characteristics

Question 4

Key Attributes for Segmentation

Answer 4

• Geographic
• Demographic
• Psychographic
• Behavioural

Question 5

Demographic attributes

Answer 5

Age, gender income, occupation, family size, race, religion, marital status, education and ethnicity

Question 6

Psychographic Attributes

Answer 6

Values, goals, needs, pain points, hobbies, personality traits, interests, political party affiliation, sexual orientation

Question 7

Geographic Attributes

Answer 7

Zip code, city, country, population density, climate, time zone, language

Question 8

Behavioural Attributes

Answer 8

-Purchasing habits
- brand interactions
- spending habits
- customer loyalty.

Question 9

What is targeting?

Answer 9

• The focus starts to narrow and specific groups are identified that share similar interests, needs and wants.
• One important aspect of targeting is identifying what motivates your potential customers to purchase a product or service.

Question 10

Targeting Checklist

Answer 10

• Size: Must have enough potential to be marketed to.
• Difference: The lack of measurability will have results that are redundant.
• Reachability: Segments that are targeted must be able to see and buy products that appeal to them.
• Profitability: Have to be quality customers, drives conversion
• Benefits. What is in it for customers?

Question 11

What is brand positioning?

Answer 11

• Developing a positioning strategy will help to establish the brand in the market.
• Is how the brand is specifically perceived by customers in the marketplace – against the competition (using criteria).

Question 12

Different types of brand positioning strategy

Answer 12

• Customer service
• Convenience-based
• Quality-based
• Differentiation Strategy
• Social media position strategy.

Question 13

Benefits of an STP Model

Answer 13

• Think differently:
  
  • Helps us find new ways to differentiate from competitors and establish a USP.
  • Development of specific marketing campaign that appeals directly to the target market and stand out from larger corporations.
• Increase market share:
  
  • Because we are now targeting specific customers.
• Reduce Costs:
  
  • Helps marketers to focus and be more specific, rather than targeting everyone.
• Increased loyalty:
  
  • Bring specific, you are able to address the products, services and campaigns that customers are looking for.
• The Right Consumers.