segmentation, targeting and positioning Flashcards
Importance of STP
1) segmentation
2) targeting
3) positioning
4) perceptual mapping
segmentation importance
- direct a firms marketing strategy
- pop. growth has slowed meaning markets are more saturated and more competition.
- trend towards micro-segmentation
- expanding disposable incomes
segmentation problems
- descriptive not predictive
- may define the wrong segment
- assumes homogeneity
- assumes competition free
approaches to segmentation
- geographical
- product related
- brand related
effective segmentation
tailored
efficient
identifiable
criteria for B2C markets
geographic
sociodemographic
psychographic
behaviouristic
criteria for B2B markets
demographic
usage variables
purchasing approach
situation related factors
personal characteristics
how do we know if segments are viable
Measurable
accessible
substantia;
differentiable
actionable
targeting strategies
undifferentiated marketing - all customers are treated the same
differentiated- customers grouped into high level market segments
concentrated/one to one- customers are treated actions taken on their unique profiles.
positioning
placing the product/service in a particular perceptual position within the customers mind, so that they have a clear and distinctive image that its consistent and positive.
4 c’s of positioning
- clarity
- consistency
- credibility
- competitiveness
positioning triangle
The brand is strong in the given area
the competitors are less strong in that area
the target group considers them important
= positioning—desired
perceptual mapping
the visual representation of the different competitive brand offerings/objects of interest in the minds of consumers ( perceptual space) based on quality, price and key attributes/ benefits
