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Flashcards in STP Deck (19):
1

Define segment marketing?

Market split into subsections of people with different needs within the larger market

2

What is targeted communication?

Where the advertising style differs depending on the target audience

3

Give 3 benefits of segmenting markets?

- Generates more profit by matching customer needs

- People stick to familiar brands, so will work their way through a product line if they like it (depends on income)

- It's profitable to segment even if it's not necessary

4

Give 3 disadvantages of segmentation?

- Can be expensive to make lots of specific versions of a product

- Target audience becomes small compared to mass marketing

- Different versions of a product may eat into the sales of the original design

5

What are the 3 methods of segmentation?

Geographic segmentation

Demographic segmentation

Pyschographic segmentation

6

What is the most common method of segmentation?

Geographic

7

What are the advantages/disadvantages of demographic segmentation?

Adv: Easy to define and measure - data publicly available

Dis: Demographics are only descriptive - don't identify individual preferences

8

What are the advantages/disadvantages of psychographic segmentation?

Adv: Detailed about the customers preferences

Dis: More difficult and expensive to collect

9

What are the 2 stages of segmenting organisational markets?

1. Macro-segmentation

2. Micro-segmentation

10

Describe the macro-segmentation stage of segmenting the market

Identify subgroups within the wider market that share characteristics

11

Describe the micro-segmentation stage of segmenting markets

Refinement stage - consumers' individual characteristics/preferences determined

More expensive stage

12

What are the 4 criteria for successful segmentation?

Briefly explain each

Distinctiveness - Boundaries between segments must be clear-cut

Tangibility - Decent-sized segments

Accessibility - Distribution/communications in the segment must be easy to access

Defendability - Company must be able to develop and defend a strong presence/comparative advantage in the segment

13

What are the 3 types of targeting?

Undifferentiated

Differentiated

Concentrated

14

What is undifferentiated targeting?

Where there is one price, one product, and the same promo techniques are used for the whole market (no segmentation - mass marketing)

15

What is differentiated targeting?

Where a different mix of products and prices cover different areas of the market.

Focus on a few segments

e.g. sports shoes / bread

16

What is concentrated targeting?

Focus on a single segment of the market
Can be very successful but attracts competitors

e.g. Gluten free products

17

What is positioning (3 details)?

How the company takes up a distinctive place in the market.

Establishes competitive advantage

Reflected in price, brand image, quality, communications

18

What is a perceptual map?

A graphical representation of the products position in its environment

19

What is mass marketing?

"undifferentiated" marketing - no segmentation

Company seeks to appeal to the entire market