Transcript Segmentation, Targeting, Positioning (STP): A Concise Roadmap

The Sequence LOGIC of Segmentation, Targeting & Positioning (STP)
Strategic Technique
Task Function
A. Why Marketers Choose Customers
1) Market Segmentation
 Segmentation Bases/Variables
Demographic
Geographic
Psychographic (Lifestyles)
Behavior (Usage/Benefits)
2) Market Targeting … for Target Marketing
 Single Segment Strategy (“Concentrated”)
 Multi Segment Strategy (“Differentiated”)
 Total Market Strategy (“Undifferentiated”)
“Profiling”; Carving the total brand market into segment profiles
using “Segmentation Bases” (also called “variables”).
Variable “x”
Variable “y”
Variable “a”
“a/x”
“a/y”
Variable “b”
“b/x”
“b/y”
“Picking”; Choosing the segment(s) to “target,” depending on
the likely “fit” between “customer value” & “brand value”
* Justify with Segmentation Criteria
-- substantial, identifiable/measurable, accessible, responsive
B. Why Customers Choose Brands
3) Positioning
 Analyze brand with “Perceptual Maps”
 Differentiate with “Positioning Bases”
included in “Marketing Mix” (4Ps)
“Plotting”; Graph customer “ideal” & brands in Perceptual Map
Attribute 1
high
1st
Find top 2 brand attributes for customer
2nd Form 2 attributes into axes & label low/high
3rd Identify “ideal point” for customer
4th Plot all brands for the customer mind axes
5th Plan moves closer to “ideal point” that
leave competitors farther from “ideal point”
than your brand using a combination of:
a) Repositioning with existing axes categories
b) Repositioning with new axes categories
Brand B
*
Attribute 2
Brand A
*
low
“ideal”
*
high
Brand C
*
low