STP Model and Market Segmentation Quiz

Market Segmentation

• Market segmentation is the process of dividing large markets into smaller, more manageable groups that can be targeted more efficiently and effectively.
• The goal of market segmentation is to provide products and services that match the unique needs of each segment.

Types of Segmentation

• Psychographic segmentation: divides buyers into different groups based on social class, lifestyle, or personality traits.
• Behavioral segmentation: divides buyers into groups based on their knowledge, attitudes, uses, or responses to a product.
• Geographic segmentation: divides the market into different geographical units, such as nations, regions, states, counties, or cities, which differ in climate, nature, etc.
• Demographic segmentation: divides the market into groups based on variables such as age, gender, family size, family life cycle, income, occupation, education, religion, race, generation, and nationality.

Marketing Strategy

• The STP model stands for Segmentation, Targeting, and Positioning, and is used to guide marketing strategy.
• Market targeting involves tailoring brands and promotion to the needs and wants of local customer groups.
• Differentiated marketing targets multiple segments with different offers.
• Concentrated marketing targets a small share of a large market.
• Micromarketing involves tailoring products and marketing programs to suit the tastes of specific individuals and locations.

Key Concepts

• Product position refers to the place the product occupies in consumers' minds relative to competing products.
• Competitive advantage can be gained through either lower prices or by providing more benefits that justify higher prices.
• Local marketing involves tailoring products and marketing programs to the needs and preferences of local customers.
• The main advantage of concentrated marketing is that it targets a small, focused group, allowing for more efficient use of resources.

True or False Statements

• Undifferentiated marketing targets several different market segments and designs separate offers for each: False
• Individual marketing involves tailoring products and marketing programs to the needs and preferences of individual customers: True
• Concentrated marketing targets a small share of a large market: True
• Micromarketing is the practice of tailoring products and marketing programs to suit the tastes of specific individuals and locations: True
• Market segments must be diverse in order to be useful: False
• Product position refers to the place the product occupies in consumers' minds relative to competing products: True
• Competitive advantage can be gained through either lower prices or by providing more benefits that justify higher prices: True
• Differentiated marketing targets the whole market with one offer: False
• Market variability does not affect the choice of target market: False

Test your knowledge about market segmentation and the STP (Segmentation, Targeting, Positioning) model used by companies to reach potential customers more effectively. This quiz covers the process of market segmentation and the requirements for effective segmentation in consumer, business, and international markets.