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14 Cards in this Set
- Front
- Back
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What are the 5 steps in the STP Process? |
1. Establish Overall Strategy 2. Segmentation Bases 3. Evaluate Segment Attractiveness 4. Select Target Market 5. Identify and Develop Positioning Strategy |
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Explain the 1st step in STP Process |
Establish overall strategy or objectives - Clearly articulate the mission and objectives of the company's marketing strategy |
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Explain the 2nd step in STP Process |
Segmentation Bases - Segment the market by developing descriptions of needs, wants, and characteristics to better understand the customers in each segment |
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What is segment attractiveness based on? |
1. Identifiable - Who is within their market 2. Reachable - Must be able to reach consumer 3. Responsive - React positively to firm 4. Substantial and Profitable - Good size & growth potential |
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What are the 5 segmentation bases? Briefly explain each one. |
1. Geographic - Based on where they live 2. Demographic - Based on characteristics 3. Psychographic - How they describe themselves 4. Behavioural - Based on benefits, usage, loyalty, and occasion 5. Multiple - Combination of 2+ segments > Geo-demographic (Geo + Demo + Lifestyle) > PSYTE Cluster - Group neighborhoods into 60 different lifestyle clusters |
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What component(s) must be known to develop psychographic segmentation? |
1. Self-Values - Goals for Life 2. Self-Concept - Image person has of themselves 3. Lifestyles - How we live our life to achieve goals |
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What is the VALS Framework? |
A psychographic system where consumers are classified into eight segments in two dimensions - Vertical (Based on income, education, health) - Horizontal (Primary motivation) |
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What is the main limitation to the Psychographic Segmentation? |
It is not objective like demographic, therefore it can be harder to identify potential customers |
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What targeting strategies are available? |
1. Undifferentiated (Mass marketing) - Can be used when products benefits everyone the same, or is a basic item 2. Differentiated - When a firm targets several market segments with different offerings for each 3. Concentrated (Niche) - Select single primary target and use all energy to meet their needs |
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Micromarketing vs Mass Customization? |
Micromarketing - Tailors a product or service to suit an individual customer's wants/needs Mass Customization - One-on-One interaction with many people to create custom-made products |
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What is Positioning? |
How a company and its' products are perceived by consumers relative to competitors |
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What are the 5 Positioning Methods? |
1. Value - Relationship of price to quality 2. Product Attributes - Focus on attributes most important to target market 3. Benefits & Symbolism - Emphasizes benefits to consumer as well as psychological meaning of the brand 4. Competition - Can choose to position head-to-head or enter a low competition market5. Market Leadership - Emphasize leadership position within the industry |
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What is the Ideal Point? |
The position at which a market segment's ideal product would lie on a perceptual map |
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What is Brand Repositioning? |
Changing a brand's focus to target new markets or realign with changing market preferences |
