Ch. 9 Segmentation, Targeting, and Positioning (STP)

A set of flashcards focusing on key vocabulary and concepts related to segmentation, targeting, and positioning in marketing.

Segmentation

The process of dividing a market into distinct groups of buyers with different needs, characteristics, or behaviors.

Targeting

The process of evaluating each market segment's attractiveness and selecting one or more segments to enter.

Positioning

The process of creating an image or identity for a product or service in the minds of the target market.

Demographic Variables

Characteristics of a population such as age, gender, education, income, and marital status that are used for segmentation.

Behavioral Variables

Variables that describe the specific actions or behaviors of consumers, such as usage rates and brand loyalty.

Attitudinal Variables

Variables that describe the thoughts, feelings, and beliefs of consumers that can influence their buying behavior.

Benefits Variables

Segmentation based on the benefits that consumers seek from a product or service.

Undifferentiated Targeting Strategy

A marketing strategy where a firm decides to ignore market segment differences and appeal the whole market with one offer.

Differentiated Targeting Strategy

A strategy where a firm targets multiple segments with different offerings.

Concentrated Targeting Strategy

A marketing strategy that targets a single market segment.

Micromarketing

A targeting strategy that focuses on tailoring products and marketing programs to suit the tastes of specific individuals or locations.

Positioning Statement

A statement that summarizes how a company wants its target market to perceive its product.

Dynamic Benefit

The benefit used by a competitor to take share from the category leader.

Main Benefit

The primary benefit provided by a product category that differentiates the category leader.

Five-Box Positioning Tool

A framework used to outline the current beliefs, desired beliefs, and customer proposition for a brand's positioning strategy.

Customer Proposition

A persuasive statement that communicates the unique value offered by a product or service to its target audience.

Market Boundary

The defined parameters for a market segment within which a company operates, influencing their marketing strategy.

Segmentation Variables

Characteristics used to divide the market into segments such as demographics, behaviors, attitudes, and benefits sought.