STP SEGMENTATION,

TARGETING,
POSITIONING
MKTG3007 CONSUMER BEHAVIOUR
CLASS 2
The STP model consist of three steps that helps you analyze your offering and the way you
communicate its benefits and value to specific group.

S
Segmentation
T P
Positioning
Targeting
Make sense of the market Decide the best customers to serving Stand from competitors

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The 3 General STP Approaches
Treat all consumers as the same or not?  if YES, go
Target only one or than one segments?  if ONLY ONE, go
 if MORE THAN ONE, go

Undifferentiated approach Concentrated approach Differentiated approach

Marketing Marketing
Mix 1 for Mix 1 for
segment 1 segment 1

segment 2

Marketing
segment 4
Marketing
One marketing mix

Mix 2 for
Mix 4 for
to cover the entire
market
Marketing
Mix 3 for
segment 3

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 MARKET
SEGMENTATION

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Definition of Market Segmentation

• Market Segmentation is
the Process of dividing a market into subsets of consumers with
common needs or characteristics. Each subset represents a
consumer group with shared needs that are different from those
shared by other groups.

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 S
BASES FOR
SEGMENTATION

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Bases: characteristics that can differentiate people into groups
Generally, such characteristics can be classified into two types: behavioral and cognitive.

Behavioral Cognitive
(sth you can tell directly) (sth you cannot tell directly)

personality traits,
age, gender, marital cultural values, and
Consumer-intrinsic status, education, income attitudes towards
(as a person, general)
politics and social issues

Consumption-based quantity of purchase, attitudes and

(as a consumer, specific) frequency of leisure preferences
activities

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 S

BASE 1:
DEMOGRAPHICS
The most prominent demographics used in segmenting markets and
targeting consumers are…

Age Gender Family Ethnicity Geodemographics

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Group Discussion (3-4 students, tentative group)
• Develop a brief but creative marketing idea for the following brand to
target LGBTQ+ group and their supporters.

• LGBTQ+ population have distinct identities that they expect to see

authentically represented in advertising

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 S

BASE 2:
PSYCHOGRAPHIC
Psychographic segmentation is the process of grouping people together based
on similar personal values, political opinions, aspirations and psychological
characteristics.
• Personality
education lifestyle
• Hobbies
• Opinions occupation Social Status values
• Life goals
• Values and beliefs income hobbies
• Lifestyle
• Social status

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BASE 3:
BENEFIT SEGMENTATION
Benefit segmentation is based on the _________ that
consumers seek from products and services.

The benefits that consumers look for represent ________ _____,

whereas buyers’ perceptions that a given brand delivers a
unique and prominent benefit result in _______ to that brand.

Marketers of ______________ products, such as shampoos,

soaps, and toothpastes, create different offerings designed to
deliver specific benefits.
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BASE 4:
MEDIA-BASED
SEGMENTATION
As more and more forms of media emerge, marketers must study the
benefits that consumers seek from adopting different communication
tools, so that they can advertise in these media effectively.

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Offline vs. Online Media Channels

Benefits Benefits

Cons
Cons

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BASE 5:
USAGE RATE
SEGMENTATION
Usage rate segmentation reflects the differences among
___heavy____, _____medium___, and __light____ users, and
____nonusers_____ of a specific product, service, or brand.

Marketers of many products, such as soup, laundry detergent,

beer, and dog food, have found that:
______________________________________________________
a relatively small group of heavy users accounts for a
_____________________________________________________.
disproportionately large percentage of the total product usage
For example, about 20% of all those who drink beer account for
about 80% of all beer consumed.

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BASE 6:
USAGE OCCASION
SEGMENTATION
Usage occasion segmentation recognizes that consumers
purchase some products for ______ _________ , as expressed
in the following statements from consumers:

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 T

EFFECTIVE
TARGETING

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To be an effective target, a market segment must be

Identifiable Sizeable Stable and Growing Reachable Congruent

Easy: demographics Big: men Stable: local old Accessible: MTR Yes: I can give what
Small: athletic and travelers you want
Difficult: benefit Fickle: teenagers
seeking slim men with wide Not accessible: wild No: I cannot
shoulders and men
narrow waists

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Behavioral targeting uses people's activities to determine
which advertisements and messages will resonate most with
them. It leverages behavioral data—like what people are or are
not doing in your app, on your website, or with your
campaigns—to trigger personalized marketing.

This method is enabled by

tracking online navigation,
and current geographic location,

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Retargeting

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Geographic location and Mobile targeting
• showroomi Showrooming is the practice of
ng examining merchandise in a traditional
__________________________________
brick-and-mortar retail store or other offline
__________________________________
setting, and then buying it online.
__________________________________

If you ran a book shop, what can you do to counter this

widespread practice?
1.Offer great and unique offline service
2. Launch attractive membership program
__________________________________
__________________________________

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Geographic location and Mobile targeting
Geofencing is a location-based service that
• geofencing businesses use to engage their audience by
___________________________________
sending relevant messages to smartphone
___________________________________
users who enter a pre-defined location or
___________________________________
geographic area.

Two tips for using Geofencing technology:

1. Think quality over quantity; always
remember the risk that you will
___________________________
2. Use it to target competitors—geofence a
competitor’s location or event to reach
customers of your competitors!

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 P

POSITIONING AND
REPOSITIONING

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After segmenting the market and selecting targeting prospects,
marketers must persuade prospective buyers to buy the products
that they offer, rather than ___________________.

Positioning is the process by which a company creates a distinct

_______ and unique ________ for its products, services, or brands in
consumers’ minds.

_____________________________________________________
The distinct image and unique identity are called a “position.”
The position, which is intangible and exists only in the
________________, represents how marketers want consumers to
perceive products and brands.
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FIVE POSITIONING STRATEGIES

1. __________________
It is a statement or slogan that describes the universal benefit of the company’s offering.

1971 1981 2003

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2. _________________
This positioning strategy focuses on the brand’s exclusivity.

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3. ____________________________
Some positioning statements acknowledge competing brands.

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4. ________________________
Positioning based on relevant attributes often expresses the brand’s superiority.
5. __________________
Linguistically, perception is not a physical object and cannot be “owned.” In marketing, the
term “un-owned” position loosely means a perception that is not clearly associated with
(owned by) an existing brand or product.

On top of the News and ahead of the Times

Repositioning
Repositioning is the process by which a company strategically changes the distinct image
and identity that its product or brand occupies in consumers’ minds.

Companies do so when:

1. consumers get used to the original positioning and it no longer stands out in their
minds. That is, when consumers begin to view the old positioning as dull, marketers
must freshen up their brands’ identities;

2. The previous image and identity was associated with negative perception for some
reason;

3. they want to appeal new segments.

Perceptual Mapping
Perceptual mapping is constructing a __________________representing consumers’
perceptions of competing brands along ___________________________.

• AAB main canteen;

• Bistro NTT;
• Renfrew Cafeteria;
• Student Hall canteen;
• Pacific Coffee/Starbucks.