1. The Sequence LOGIC of Segmentation, Targeting & Positioning (STP)
Strategic Technique
Task Function
A. Why Marketers Choose Customers
1) Market Segmentation
Segmentation Bases/Variables
Demographic …“Descriptors” (age, race, etc.)
Geographic …“Descriptors” (state, city, ZIP, etc.)
Psychographic (Lifestyles) …“Descriptors”
Behavior (Usage/Benefits) …“Descriptors”
“Profiling”; Carving the total brand market into segment profiles
with BEST “Descriptors” of “Segmentation Bases” (“variables”).
2) Market Targeting … for Target Marketing
Single Segment Strategy (“Concentrated”)
Multi Segment Strategy (“Differentiated”)
Total Market Strategy (“Undifferentiated”)
“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)
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:
Repositioning with existing axes categories
Repositioning with new axes categories
“Plotting”; Graph customer “ideal” & brands in Perceptual Map
Descriptor “x”
Descriptor “y”
Descriptor “a”
Descriptor “b”
“a/x”
“b/y”
“b/x”
“a/y”
Attribute 1
Attribute 2
high
low
“ideal” *
Brand A
Brand C
Brand B