STP FRAMEWORK

What is market segmentation?

Divide the market into distinct consumer groups that share similar needs or responses.

What are the four main segmentation bases?

Bases (remember → G D P B):

Geographic – region, climate, city size

Demographic – age, gender, income, family size, education

Psychographic – lifestyle, personality, social class

Behavioural – usage rate, loyalty, benefits sought, user status

What makes a good segment?

Good segment = M-A-S-D-A:

Measurable | Accessible | Substantial | Differentiable | Actionable

Why does segmentation matter?

Why it matters:

Focuses marketing effort → higher efficiency + customer satisfaction.

Give an example of how Who Gives A Crap uses behavioural segmentation.

Example (WGAC): eco-conscious, humour-loving buyers wanting sustainable toilet paper.

Define targeting in marketing

Selecting which segment(s) to enter after evaluating attractiveness & fit.

What factors are analysed when selecting a target segment?

Evaluation criteria: size • growth • structural attractiveness • company fit

Differentiate mass, differentiated, and niche, micro marketing strategies.

Strategies (M C D U):

Mass/Undifferentiated – one offer for everyone

Differentiated – different offers for each segment

Concentrated (Niche) – large share of one niche

Micromarketing – local or individual tailoring

Which targeting strategy best suits Who Gives A Crap and why?

Example (WGAC): Targets ethical consumers willing to pay slightly more for social impact.

How is positioning different from differentiation?

*Positioning = *how consumers perceive your brand relative to competitors.

*Differentiation = *what you do to earn that perception.

List five criteria for effective differentiation.

Ways to differentiate: product • service • channel • people • image

Name the five types of value propositions.

Value propositions:

More for more (premium brand)

More for the same (high value)

The same for less (discount)

Less for much less (budget)

More for less (rare win-win)

What is the positioning statement template?

"To [target segment], our [brand] is [a concept] that [point of difference]."

Create a 15-second positioning pitch for WGAC.

“To eco-minded Australians seeking ethical essentials, Who Gives A Crap is a toilet-paper brand that turns a boring purchase into a fun way to change the world.”