Chapter 9 STP

Question 0

2 steps to segmentation

Answer 0

Step 1 establish overall strategy

Step 2 choose a segmentation method

Question 1

STP

Answer 1

Segmentation
Targeting
Positioning

Question 2

Example of segmentation methods

Answer 2

Geographic
Demographic 
Psychographic
Benefits
Behavioral

Question 3

Geographic segmentation

Answer 3

Based on he here someone lives

Example subways menu items will vary by geographic location

Question 4

Demographic segmentation

Answer 4

Age gender education etc

Easy to identify

Question 5

Psychographic

Answer 5

How consumers describe themselves how people occupy their time

Question 6

How to determine psychographics

Answer 6

Through self value aka drive and goals
Self concept image of oneself
Lifestyle way we live

Question 7

Value and lifestyle surveyVALS

Answer 7

Consumers can be classified into eight segments which includes resources level of education etc.

Question 8

Benefit segmentation

Answer 8

Groups consumers based on benefits they derive from products and services

Question 9

Behavioral segmentation

Answer 9

How one uses the Product or service

Question 10

Occasion

Answer 10

Part of behavioral segmentation example men’s warehouse sell tuxedo for special occasion

Question 11

Loyalty segmentation

Answer 11

People exclude competitors because they are loyal loyalty segmentation involves retaining these loyal customers example united airlines flyer miles

Question 12

Step 1 of STP

Answer 12

Articulate vision or objectives consistent with firms mission and SWOT

Question 13

Geodemographic segmentation

Answer 13

Combines geography and demography and lifestyle characteristics to classify consumers

Question 14

PRIZM

Answer 14

Potential rating index by zip market uses detailed demographic data and habits of people within a tract

Question 15

2 steps to targeting

Answer 15

3. Evaluate segment attractiveness.

4. Select target market

Question 16

Step 2 STP

Answer 16

Determine the segmentation method that will be used e.g demographics lifestyle etc.

Question 17

Step 3 STP

Answer 17

Evaluate segment attractiveness and whether segment is worth pursuing

Question 18

Criteria that determines segment attractiveness

Answer 18

Is the segment
Identifiable?
Substantial?
Reachable?
Responsive?
Profitable ?

Question 19

Identifiable

Answer 19

Identify who is within their market do not overlap

Question 20

Substantial

Answer 20

After identifying potential markets measure their size too small equals too small profits

Question 21

Reachable

Answer 21

Consumer knows the product exists!!!

Question 22

Responsive

Answer 22

Consumer must react positively to the firms offering

Question 23

Profitable

Answer 23

Assess potential profits both current and future expected growth rate

Question 24

Segment profitability calculation

Answer 24

Segment size* segment adoption percentage*purchase behavior* profit margin percentage- fixed costs

Question 25

Step 4

Answer 25

Select the target market

Question 26

Undifferentiated targeting strategy or mass marketing

Answer 26

Focuses on similarities in needs of customers as opposed to the differences used when everyone might be considered a potential user of its product ex sugar

Question 27

Differentiated targeting strategy

Answer 27

Firms target different market segment with different offerings for each ex Conde Nast has vogue go and Bon appetite magazines

Question 28

Concentrated targeting strategy

Answer 28

Selects a single primary target market and focuses all it's energies on providing a product to fit the markets needs

Question 29

Micro marketing

Answer 29

Aka one to one marketing is when a firm tailors to the specific need of a consumer

Question 30

1 step in positioning

Answer 30

Identify and develop positioning strategy

Question 31

Step 5

Answer 31

Develop a positioning strategy that defines what a product does or represents in comparison to the competition

Question 32

Firms value proposition

Answer 32

Communicates Customer benefits to be received from the product

Question 33

Main value proposition components

Answer 33

Target market Offering name or brand Product/service category or concept Unique point of difference and benefits

Question 34

Values as a positioning strategy

Answer 34

Popular because of the relationship of price to quality Volvo equals box car equals safety

Question 35

Symbols

Answer 35

Powerful positioning tools that distinguish brands from competition aka nike swoosh

Question 36

Perceptual map

Answer 36

Displays position of products In consumers minds

Question 37

6 steps to perceptual maps

Answer 37

``` Determine consumers perceptions and evaluations of product or service in relation to competitors Identify markets ideal points on size Identify competitors positions Determine consumer preferences Select position Monitor position strategy ```