The STP framework: market segmentation, targeting strategies, and positioning a product against competitors.
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- What is market segmentation?
- Dividing a market into distinct groups with different needs, preferences, or characteristics.
- What is targeting in marketing?
- Selecting which market segments a company will pursue and focus its marketing efforts on.
- What is positioning?
- Creating a distinct image or place for a product in the consumer's mind relative to competitors.
- Name the three main phases of the STP framework.
- Segmentation, Targeting, and Positioning.
- What are demographic segments?
- Groups of consumers defined by age, gender, income, education, and family status.
- What are psychographic segments?
- Groups of consumers defined by lifestyle, values, interests, attitudes, and personality traits.
- What are behavioral segments?
- Groups of consumers defined by purchase habits, usage rates, brand loyalty, and buying occasions.
- What are geographic segments?
- Groups of consumers defined by location, such as country, region, city, climate, or urban versus rural.
- What is undifferentiated targeting?
- Marketing to the entire market with one standardized product and marketing message.
- What is differentiated targeting?
- Offering different products or marketing mixes to different market segments.
- What is concentrated targeting?
- Focusing marketing efforts on one specific market segment with a specialized product or message.
- What is micro-targeting?
- Using detailed data and technology to reach very specific small groups or individual consumers.
- What is a value proposition?
- The unique combination of benefits and value that a product or brand offers to customers.
- What is competitive positioning?
- Establishing a product's place in the market by defining how it differs from and compares to competitors.
- Why is market segmentation important?
- Because different consumers have different needs, preferences, and buying behaviors, so one product cannot satisfy everyone equally.