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Marketing Chapter 9

Terms in this set (24)

STP Process
Step 1: establish strategy and objectives
Step 2: segmentation methods
Step 3: evaluate segment attractiveness
Step 4: select target market
Step 5: identify and develop positioning strategy
What is the purpose of the first step in the STP process?
To articulate the vision or objectives of the company's marketing strategy clearly. The strategy must be consistent with the mission and objectives as well as its current SWOT.
What is the purpose of the second step in the STP process?
To use a particular method or combination of methods to segment the market.
What are the 6 segmentation methods marketers use to categorize the market?
1. Demographic
2. Geographic
3. Psychographic
4.Geodemographic
5.Behavioral
6. Benefit
Geographic Segmentation
where the customer lives
Demographic Segmentation
easily measured, objective characteristics such as age, gender, income, and education
Psychographic Segmentation
how customers describe themselves; big picture; who they want to be, and how the occupy their time (AIO)
Geodemographic Segmentation
combination of geographic, demographic, and lifestyle characteristics
Behavioral Segmentation
how customers use a product or service; include occasion and loyalty
Benefit Segmentation
based on the benefits a consumer drives from the product
Self-Value
big picture life goals
Self-Image (Concept)
how a person sees themselves
Lifestyle
a way a person lives their life to achieve their goals (AIO)
VALS
(value and lifestyle surveys) psychographic tool that measures motivation
Occasion Segmentation
based on when a product of service is purchased or consumed
Loyalty Segmentation
investing in loyalty initiates to retain the firms's most profitable customers
Undifferentiated Targeting Strategy (Mass Marketing)
a product or service is perceived to provide the same benefits to everyone, with no need develop strategies for different groups
Differentiated Targeting Strategy
when a firm targets several markets segments with a different offering for each
Concentrated Targeting Strategy
strategy selecting a single, primary target market and focusing all energies on providing a product to fit that market's needs
Micromarketing (One-to-One Marketing)
an extreme form of segmentation that tailors a product or service to suit an individual customer's wants or need
Value Proposition
unique product or service provided to customers that is better and different from competitor's
Value
what you GET for what you GIVE
Perceptual Map
displays, in two or more dimensions, the position of products or brands in the consumer's mind
Ideal Points
the position in which a particular market segment's ideal product would lie on a perceptual map
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