29 Questions
What is the primary purpose of segmentation in the STP approach?
To divide prospective buyers into distinct groups with common needs
Which of the following is NOT a type of segmentation?
Sociographic
What is the ultimate goal of the STP approach?
To implement a chosen image and appeal to the chosen segment
What is the primary focus of the targeting stage in the STP approach?
Evaluating the attractiveness of each segment
Which of the following companies might not need to segment their market?
A company with a monopoly in the market
What is the primary purpose of positioning in the STP approach?
To implement a chosen image and appeal to the chosen segment
What is the primary advantage of using psychographic and behavioral segmentation over geographic and demographic segmentation?
It can provide a competitive advantage
What is the main criterion for a segment to be considered substantial?
It must be profitable enough to serve
What is the primary consideration for market growth in segment attractiveness?
Growth rate of the market
What is the main goal of targeting in the marketing strategy process?
To select the segment(s) on which to focus
Why is it important to evaluate market competitiveness in segment attractiveness?
To assess the number of competitors and entry barriers
What is the implication of the phrase 'You can't be all things to all people' in targeting?
Firms should focus on a single segment
What is the primary purpose of a positioning statement in a business?
To reflect the culture and strategy of the business
What is the key benefit of Mountain Dew, according to its positioning statement?
Has the highest level of caffeine
What is the target segment of Evernote, according to its positioning statement?
Busy multitaskers
What is the purpose of perceptual mapping?
To show consumer perceptions of brands on important buying dimensions
What determines the dimensions of a perceptual map?
The dimensions that are important to consumers
What is the outcome of a perceptual mapping exercise?
A map showing consumer perceptions of brands on important buying dimensions
What is the main objective of target market selection in a marketing strategy?
To choose segments where the organization's marketing efforts will have the greatest impact
What is the outcome of a successful positioning strategy in a customer's mind?
A distinct position in customers' minds
What is the primary goal of differentiating a product offering in a marketing strategy?
To design meaningful differences into the total offering to distinguish from competitors
In the context of target market selection, what does 'Nurture/ Primary Target' refer to?
Current customers with high profit potential
What is the ultimate outcome of a positioning strategy in terms of the customer-focused value proposition?
A reason why the target market should buy the product/service
What is the purpose of creating awareness among the target market in a positioning strategy?
To inform the target market about the product/service
What is the main purpose of perceptual mapping in product repositioning?
To move the perception of the product closer to the segment's ideal point
What is the link between the Overall Positioning Strategy and a brand?
It is linked to the brand's value proposition
What was the result of the Marlboro Man campaign in 1955?
It increased sales by 3,241%
What is the goal of repositioning a product in perceptual mapping?
To move the product closer to the customers' ideal point
What is the key benefit of a brand's positioning strategy?
It helps to differentiate the product from competitors
Study Notes
STP Approach
- The STP approach consists of three main stages: Segmentation, Targeting, and Positioning.
Segmentation
- Dividing/aggregating prospective buyers into groups that have common needs and will respond similarly to a marketing action.
- Reasons for segmentation: cut costs, serve customers better, higher growth or profits.
- Types of segmentation: geographic, demographic, psychographic, behavioral, and value preference.
- Geographic segmentation includes nations, regions, cities, zip codes, density, and climate.
- Geographic and demographic segmentation are easy to measure, while psychographic and behavioral segmentation are harder to measure but can provide a competitive advantage.
Describe the Segment
- Criteria for a segment describer: measurable, accessible, substantial, differentiable, and actionable.
- A segment must be measurable in terms of size, purchasing power, and profiles.
Segment Attractiveness
- Factors to consider: market growth, size, growth rate, profits, market competitiveness, number of competitors, entry barriers, substitutes, and market access.
Targeting
- Selecting one or more segments to focus on based on profitability, fit with firm objectives and resources, and corporate culture.
- Five patterns of target market selection: current profitable segments, future target segments, potential target segments, secondary target segments, and avoid segments.
Positioning
- Developing a positioning statement that defines the target segment, brand, concept, and point of difference.
- Examples of positioning statements: Mountain Dew and Evernote.
- Perceptual mapping shows consumer perceptions of brands on important buying dimensions.
- The overall positioning strategy is linked to a value proposition, which is the full mix of benefits upon which a brand is positioned.
Applications of Perceptual Mapping
- Product repositioning: moving perception of a product closer to the segment's ideal point.
- Creating awareness among the target market to develop a distinct and important position in customers' minds.
Test your understanding of the STP approach in marketing, including segmentation, targeting, and positioning. This quiz covers the concepts of dividing prospective buyers into groups, selecting target segments, and implementing a chosen image and appeal to the target segment. Review the key concepts of marketing strategy and measure your knowledge of this important topic.
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