STP Marketing Model

Question 1

What does STP stand for?

Answer 1

Segmentation, Targeting, Positioning

Question 2

Elaborate on Segmentation

Answer 2

Divide the market into distinct groups of customers.

Question 3

What are the different Segmentation groups? (Name 4)

Answer 3

Demographic, Geographic, Psychological, Behavioural

Question 4

What is Demographic Segmenting?

Answer 4

Dividing the market into age, gender, income, education level, religion, marital status.

Question 5

What is Geographic Segmenting?

Answer 5

Dividing the market by country, region, province, state.

Question 6

What is Psychological Segmenting?

Answer 6

Dividing the market by lifestyle, hobbies, activities, opinions, personality, entertainment choices.

Question 7

What is Behavioural Segmenting?

Answer 7

Dividing the market on how they use the product (brand loyalty, usage levels, key features used)

Question 8

Elaborate on Targeting

Answer 8

Select most attractive segment to focus the marketing on.

Question 9

What are important factors that needs to be considered to choose a segment?

Answer 9

Size, Profitability, Ease of Reach

Question 10

Elaborate on Positioning

Answer 10

Determining how to position a product for each target segment.

Question 11

State 3 Types of Position that a company can establish.

Answer 11

Functional - solves a problem, providing benefit.
Symbolic - appeals to customer self-image, ego, belongingness
Experiential - connects emotionally with customers

Question 12

Advantage of STP Marketing Model

Answer 12

1. Allows the increase of sales by defining a target market and positions product directly at the segments.
2. Avoids wasting money by advertising to the whole market.

Question 13

Disadvantage of STP Marketing Model

Answer 13

Increase cost if have multiple version of product which needs a different marketing campaign for each segment.