Segmentation, Targeting, Positioning (STP)
Before start think about marketing (4P), you must understand what is STP. Terms of STP include : market strategy; target markets; positioning; market segmentation and target markets; market segmentation and demographics
Segmentation : Identifying al segments for the product/service. Many of the resources listed in module 3 will be helpful to you when you develop segments. To be useful, segments should be:
Accessible (can you reach them)
Distinct from one another
The objective of segmentation is to find attractive markets. Strategies include
Break market into components
Regroup into market segments
Select which segment to target
Positioning is an essential component -- and skill - in good marketing. Perceptual maps are used to determine the position of a product, firm, person, service or idea. Positioning maps, or perceptual maps can be simple, yet very effective marketing tools. One definition of Positioning Theory is: the science of perceptual strategy. It is based on a theory that strategy can only be planned in the mind of the consumer, not the marketplace*.
It is important to understand the levels of competition because positioning applies at all levels of competition. For example:
Product Level (e.g., Pepsi vs. Coke)
Category Level (e.g., Cola vs. Root beer)
Corporate Level (e.g., Pepsi Inc. vs. Coca Cola Company)
Industry Level (e.g., Beverage Industry vs. Snack food Industry)
What is target?. This is the real goal/objective in market that marketer want to reach.
As a simple questions are :
What percent of the population uses the product at all?
What percent uses your brand?
How does that compare to competing brands?
What is the demographic profile of the product category?
Which media reach the users of this category?