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10 Cards in this Set
- Front
- Back
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What are the five steps in the STP process?
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Step 1: Strategy or objectives (Segmentation)
Step 2: Profile segments (Segmentation) Step 3: Evaluate segment attractiveness (Targeting) Step 4: Select target market (Positioning) Step 5: Identify and develop positioning strategy (Positioning) |
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What is Step 1 in the STP process?
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Establish Overall Strategy or Objectives:
- strategy must be consistent with mission and objectives as well as SWOT |
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What is Step 2 in the STP process?
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Profile Segments:
- Geographic segmentation: organize customers based on where they live - Demographic: grouping based on shared, easily measured characteristics - Psychographic: personality, lifestyle, social class - Behavioural: benefits sought, usage, loyalty |
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What is the VALS Framework?
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- psychographic tool classifying consumers into eight groups: innovators, thinkers, believers, achievers, strivers, experiencers, makers or survivors
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What is Step 3 in the STP process?
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Evaluate Segment Attractiveness:
- Use four criteria to see if the segment is worth pursuing - Identifiable: can they identify who exactly is in the target? - Reachable: access market through persuasive communications and product distributions - Responsive: target must react similarly and positively to the firm's offering - Substantial and Profitable: measure size and growth potential of target |
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What is Step 4 in the STP process?
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Select Target Market
- Undifferentiated: market that the G/S can provide the same benefits to everyone with no need to develop segmentation strategies - Differentiated: target several market segments with a different offering for each - Concentrated: select a single, primary target market and focus all energies on providing a product to fit that market - Micromarketing: one-to-one selling that offers mass customization |
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What is Step 5 in the STP process?
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Identify and Develop Positioning Strategy:
- positioning is the mental picture that people have about a company and its G/S relative to competitors - positioning will form the consumer's preference for a company |
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What are the various positioning strategies?
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- Value: popular since price and quality are important considerations for purchase
- Product Attributes: focus on what's most important to the target - Benefits and Symbolism: emphasize the benefits of the brand as well as the psychological meaning of it - Competition: choose head-to-head that often leads to price wars; differentiation sets the product apart - Market Leadership: emphasize their leadership position in the industry |
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What are the positioning stages?
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1. Determine consumers' perceptions and evaluations of the G/S in relation to competitors
2. Identify competitors' positions 3. Determine consumer preferences 4. Select the position 5. Monitor the positioning strategy |
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What is repositioning?
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- changing their focus to target new markets or realign the brand's core emphasis
- good marketers must constantly re-evaluate their brand's position in order to determine when to reposition - costs a lot to change product and packages as well as ads; can alienate current market and miss new target |
