2.1 STP & Segmentation

Question 1

WHAT IS STP?

Answer 1

Marketers segment markets, identify attractive markets to target, identify new opportunities, develop suitable promotion and communicating strategies, allocate resources to maximize marketing activities.

Question 2

WHAT IS SEGMENTATION?

Answer 2

Market segmentation is the process of dividing the total market into relatively homogeneous sub groups of consumers that have similar needs or characteristics leading them to respond in a similar way to particular marketing programs.

Question 3

WHAT IS THE STP PROCESS?

Answer 3

1. Identify bases for market segmentation
2. develop profiles for resulting segments
3. developing selection criteria
4. selecting target segments
5. developing positioning strategies for each target segment
6. developing a marketing mix for each target segment

Question 4

WHAT ARE THE LEVELS OF SEGMENTATION?

Answer 4

1. Mass marketing
2. Segment marketing
3. Niche marketing
4. Local marketing
5. Individual marketing

Question 5

WAT ARE THE BENEFITS OF SEGMENTATION?

Answer 5

1. facilitates the right choice of the target market
2. facilitates effective tapping into a chosen market segment
3. Facilitate market expansion
4. ensures better and effective communication
5. ensures customer retention
6. increases profitability
7. gives focus to company’s marketing stratergy

Question 6

CONDITIONS FOR EFFECTIVE SEGMENTATION

Answer 6

1. Differentiable
2. Actionable
3. Accessible
4. Measurable
5. Substantial

Question 7

BASES OF SEGMENTATION

Answer 7

1. DEMOGRAPHIC
2. GEOGRAPHIC
3. BEHAVIORAL
4. PSYCHOGRAPHIC
5. BENEFIT/USP
6. GEO DEMOGRAPHIC