STP Concepts Quiz

Segmentation in the STP Model

• Involves dividing a larger market into smaller groups of consumers with similar needs or characteristics
• Helps to identify high-potential segments and focus marketing efforts on them

Micro-segmentation in the STP Model

• Focuses on identifying and targeting small, niche markets within a larger market
• Involves breaking down larger segments into smaller, more precise groups

Targeting in the STP Model

• Involves selecting the most profitable segments to target with a firm's marketing efforts
• Helps to allocate resources efficiently and maximize returns

Significance of Small Segments

• Small segments within countries can be important as they can provide a competitive advantage
• Companies can tailor their marketing efforts to meet the unique needs of these small segments

Typical Segmentation Criterion at the Local Level

• Geographic segmentation (e.g., city, region) is a common criterion at the local level
• Other criteria, such as demographics, psychographics, and behavioral factors, may also be used