Marketing STP – Flashcards
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What does STP stand for?
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Segmenting, Targeting, and Positioning
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How many steps are in the STP process?
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5 Steps
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Segmenting
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Divide the market into groups based on common characteristics
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What are the two steps to segmenting?
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1) Strategy or Objectives 2) Segmentation Methods
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What are the two steps in Targeting?
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3) Evaluate segment attractiveness 4) Select target market
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What is the step in positioning?
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5) Identify and Develop Positioning Strategy
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What is targeting?
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Select the best groups to target for your product
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What is positioning?
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Position product by developing a marketing mix that will appeal to target market
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What are some segmentation methods?
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Geographic, demographic, psychographic, benefits, and behavioral
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What criteria do we use to form segments?
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1) Simplicity and cost effectiveness of assigning potential buyers to segments 2) Potential for Increased Profit 3) Similarity of needs of potential buyers within a segment 4) Difference of needs of buyers among segments 5) Potential of a Marketing action to reach a segment
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What are PRIZM clusters?
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(Geodemographic) Potential rating index by Zip Market (PRIZM)
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PRIZM- Zip Market
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*Tracks consumption & media habits by zip code *More than 60 characteristics *Created 66 demographic segments or neighborhoods
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What are the 5 traits to evaluate segment attractiveness?
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Substantial Identifiable Reachable Profitable Responsive
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Identifiable
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Your firm must determine who is within your market to be able to design products or services to meet their needs
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Reachable
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Consumers in the segment must be able to receive your marketing messages to know the product or service exists, understand what it can do for them, and recognize how to buy it.
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Responsive
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For a segmentation strategy to be successful, the customers in the segment must react similarly and positively to your firm's offering.
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Substantial
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Once the firm has identified its potential target markets, it needs to measure their size and growth potential. If a market is too small or its buying power is insignificant, it won't generate sufficient profits or be able to support marketing mix activities.
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Profitable
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You must focus your assessment on the potential profitability of each segment, both current and future. Key factors to keep in mind in this analysis include market growth (current size and expected growth rate), market competitiveness (number of competitors, entry barriers, product substitutes), and market access.
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What are the 4 strategies for selecting a target market?
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1) Differentiated 2) Undifferentiated or Mass Marketing 3) Micromarketing or One-to-one 4) Concentrated
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Positioning methods for a product
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*Value *Salient Attributes *Symbol *Competition Approaches could be head to head or differentiation
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Perpetual Map
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Study figure in powerpoint fun, strong taste, healthy, light taste, used to reposition different market items
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Perceptual Map by definition
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is a diagrammatic technique used by asset marketers that attempts to visually display the perceptions of customers or potential customers. Typically the position of a company's product, product line, or brand is displayed relative to their competition.
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5 steps in perceptual map decisions
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1) Determine consumers perceptions and evaluations in relation to competitors 2) Identify competitors positions 3) Determine consumer preferences 4) Select the position 5) Monitor the positioning strategy
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Step 5:
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Take marketing actions to reach target markets
