Segmentation, Targeting, and Positioning (STP) in Marketing

Vocabulary flashcards covering key STP and related marketing concepts from the lecture notes.

STP framework (Segmentation, Targeting, Positioning)

A framework that overlays the marketing process to identify target segments and determine how a brand should be positioned to them.

Segmentation

The process of dividing a market into groups of consumers with common needs or characteristics to enable targeted marketing.

Targeting

Choosing one or more segments to pursue with a distinct marketing strategy.

Positioning

How a brand is perceived in the minds of the chosen segment and how it is differentiated from competitors.

Primary target audience

The main segment a company concentrates its marketing resources on.

Secondary target audience

Additional segments that may be reached or addressed but are not the primary focus.

Geographic segmentation

Dividing the market by location such as country, region, city, or climate.

Demographic segmentation

Dividing the market by measurable population characteristics such as age, gender, income, education, occupation, and family.

Psychographic segmentation

Dividing the market by values, attitudes, interests, lifestyle, personality, and activities interests opinions (AIO).

Behavioral segmentation

Dividing the market by knowledge, attitudes, usage, loyalty, and responses to products; including occasions.

AIO

Activities, Interests, and Opinions used to describe consumer psychographics.

Points of difference

Unique benefits or attributes that distinguish a brand from its competitors.

Points of parity

Essential attributes that a brand must have to be a competitor in the category.

Value proposition

The bundle of benefits offered to the customer that justifies the brand choice.

Brand equity

The value of a brand based on consumer perceptions and attitudes.

Positioning statement

A concise description of the target segment, the offering, and why the segment should choose it.

Four Ps

Product, Price, Place, and Promotion; the core elements of the marketing mix.

Seven Ps

The extended marketing mix that adds People, Process, and Physical evidence to the original four Ps.

Mass marketing

An undifferentiated approach that targets the entire market rather than a segment.

Differentiated marketing

An approach that targets multiple segments with distinct marketing strategies.

Niche marketing

A focused marketing strategy aimed at a very specific, well-defined segment.

One to one marketing

Highly customized marketing aimed at individual customers; often expensive.

Customer profile

A detailed description of a segment including demographics, psychographics, needs, and touchpoints.

Touchpoints

Points of interaction between a brand and a customer across channels and times.

Occasion segmentation

Behavioral segmentation based on the occasions when a product or service is used.

Attractiveness criteria for segments

Measurable, Accessible, Substantial, Differentiable, and Actionable.

Audit and situation analysis

Assessing the current market, macro environment, customers, and competitors to inform strategy.

Green funnel vs Red funnel

Green funnel reflects upfront information gathering; red funnel reflects decision making and investment with risk.

Repositioning

Changing an existing brand or product positioning to extend life or respond to market change.