The STP-Model - Segmentation, Targeting, Positioning done ...

According to the popular “DAMP” approach to targeting, as defined by Philip Kotler (1984), for market segmentation to be effective, all segments ... Popular TheMacroEnvironment–SixForcesintheEnvironmentofaBusiness TheNewProductDevelopmentProcess(NPD)–ObtainnewProducts 4TypesofConsumerProductsandMarketingConsiderations–Convenience,Shopping,SpecialityandUnsoughtProducts CharacteristicsofServices:WhatisaService–Andwhatmakesitsospecial? ThreeLevelsofProduct–CoreValue,ActualProduct,AugmentedProduct BrandingDecisions–4BrandStrategyDecisionstoBuildstrongBrands ProductMixdecisions–Width,length,depthandconsistency CategoriesofNewProducts–WhatisaNewProduct? CharacteristicsoftheProductLifeCycleStagesandtheirMarketingImplications ProductLifeCycleStages(PLC)–ManagingtheProductLifeCycle ProductMixPricingStrategies–PricingtheProductMix Cost-basedPricing–PricingbasedonCosts MarketingExplained TheSTP-Model–Segmentation,Targeting,Positioningdoneright byMaximilianClaessens 30thApril2019 writtenbyMaximilianClaessens 30thApril2019 26,174views TheSTPmodelisacentralconceptinmarketingthatisabsolutekeytoservingamarketsuccessfully.STPreferstothreeactivities:segmentation,targeting,andpositioning.Marketerssegmentmarketsandidentifyattractivesegmentstotarget,beforedevelopingsuitablepositioningstrategiesandallocatingresourcestoprioritisemarketingactivities.TheuseoftheSTPmodelhasbecomemoreandmorepopularbecauseoftheincreasingprevalenceofmaturemarkets,greaterdiversityincustomerneeds,andtheabilitytoreachnichesegments. ComponentsoftheSTPModel STPModel Segmentation TheSTPmodelstartswithdividingupthemarket,whichiscalledmarketsegmentation.Marketsegmentationreferstothedivisionofamassmarketintoidentifiableanddistinctgroups(segments).Eachofthesesegmentshascommoncharacteristicsandneeds,anddisplayssimilarresponsestomarketingactions.Varioussegmentationcriteriacanbeusedtodivideupthemarket,includingdemographic,geographic,psychographicandbehavioralvariables. Targeting ThesecondpartoftheSTPmodelistargeting.Thisreferstodeterminingwhich,ifany,ofthesegmentsuncoveredshouldbetargetedandmadethefocusofacomprehensivemarketingprogramme. Accordingtothepopular“DAMP”approachtotargeting,asdefinedby PhilipKotler(1984),formarketsegmentationtobeeffective,allsegments mustbe: Distinct: eachsegmentmustclearlydifferfromothersegments,whichmakesdifferent marketingmixesnecessary.Accessible: buyersmustbeabletobereachedthroughappropriatepromotionalactivities anddistributionchannels.Measurable: thesegmentmustbeeasytoidentifyandmeasure.Profitable: thesegmentmustbesufficientlylargetoprovideastreamofconstantfuturerevenues andprofits. Positioning ThelastpartoftheSTPmodelispositioning,whichmeanstoensurethatabrandoccupiestherightspotinthemindoftargetconsumers.Positioningisthemeansbywhichgoodsandservicescanbedifferentiatedfromoneanotherandtherebygiveconsumersareasontobuy.Itencompassestwokeyelements.Thefirstconcernsthephysicalattributes,functionality,andcapabilitythatabrandoffers,suchasacar’senginespecificationanddesign.Thesecondelementconcernsthewayinwhichabrandiscommunicatedandhowconsumersperceivethebrandrelativetocompetingbrandsinthemarketplace. BenefitsofusingtheSTPModel ThekeybenefitsofusingtheSTPmodelinclude: enhancing acompany’scompetitivepositionproviding directionandfocusformarketingstrategies(includingtargetedadvertising, newproductdevelopment,andbranddifferentiation)byallocatingresourcestotarget segmentsidentifying marketgrowthopportunitiesthroughidentificationofnewcustomersorproduct useseffective andefficientmatchingofcompanyresourcestotargetmarketsegmentswhich promisethegreatestreturnonmarketinginvestment(ROMI) CompaniesshouldthusalwaysusetheSTPmodelasastartingpointinsteadofsimplydevelopingaproductandthenfindingtherightcustomerstosellitto.Byfollowingtheprocessofsegmentation,targetingandpositioning,aclearpictureoftheneedsandwantsofthecustomersisobtained,whichservesasafoundationfordevelopingsuitablesolutionstouniquecustomerproblems. 3 FacebookTwitterPinterestLinkedinRedditWhatsappEmail previouspost WhatisSEA?–UnderstandingSearchEngineAdvertising nextpost SearchEngineOptimizationTools–SEOaidsthatyouneedforyourOnlineMarketing Youmayalsolike LocalizationinMarketing–HowtoBoostYour... 11thNovember2021 WhatisaProduct?DefinitionofProductsand... 6thNovember2021 Howtouseablogtogroworganic... 31stOctober2021 DifferentTypesofShoppers–Howtoconvince... 15thOctober2021 EssentialMarketingSkills–WhatSkillsDoYou... 3rdOctober2021 GuidetoaGoodEmailIntroduction–5... 26thSeptember2021 WhyanAdvancedPOSSystemisEssentialin... 19thSeptember2021 GuideToMarketingBudgets–HowMuchShould... 29thAugust2021 8PrinciplesofBrandingThatEveryBusinessShould... 22ndAugust2021 TopMarketingToolstoUseonYourWebsite... 1stAugust2021 xx