STP is the strategic core of marketing. Instead of trying to sell to everyone, firms choose the right customers and create a clear value position in their mind.
A simple exam line: STP comes before the marketing mix. First decide the customer and positioning; then decide Product, Price, Place and Promotion.
STP helps a firm to:
A segment is useful if it is:
(MSADA is an easy mnemonic.)
Common bases:
Exam tip: give 1 example for each base.
B2B segmentation often uses:
Example: a software company targeting SMEs vs large enterprises.
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Marketing management is “planning, organising, controlling and implementing of marketing programmes, policies, strategies and tactics designed to create and satisfy the demand for the firms' product offerings or services as a means of generating an acceptable profit.”
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STP is the strategic core of marketing. Instead of trying to sell to everyone, firms choose the right customers and create a clear value position in their mind.
A simple exam line: STP comes before the marketing mix. First decide the customer and positioning; then decide Product, Price, Place and Promotion.
STP helps a firm to:
A segment is useful if it is:
(MSADA is an easy mnemonic.)
Common bases:
Exam tip: give 1 example for each base.
B2B segmentation often uses:
Example: a software company targeting SMEs vs large enterprises.
After segmenting, the firm evaluates segments on:
In exams, write these as “attractiveness + company fit”.
Positioning means creating a strong brand place in the mind of target customers.
Steps (simple):
A standard positioning statement format:
Differentiation can be built by:
Good differentiation must be meaningful and hard to copy.
A perceptual map shows how customers perceive brands on two key attributes.
Example attributes:
Quality (High)
^
| Brand C (High price, high quality)
| Brand B
|
| Brand A (Low price, medium quality)
+------------------------------> Price (High)
Low
Interpretation:
From this topic
A good market segment should be:
These conditions ensure segmentation is practical and profitable.
Consumer markets can be segmented on different bases. Any three with examples:
Examples help show practical understanding.
STP is a strategic approach that helps a firm choose the right customers and create a strong brand position before deciding the marketing mix.
Link with marketing mix:
Thus, STP ensures marketing mix is customer-focused and creates competitive advantage.