Limkokwing Univrsity of Creative Technology Faculty of Design and innovation By; Maziar Mohajeri
STP refers to the three activities segmentation, targeting, and positioning
Enhancing a company’s competitive position by providing direction and focus for marketing strategies ;
▪ targeted advertising, ▪ new product development, and ▪ brand differentiation.
Examining and identifying growth opportunities in the market through the identification of new customers, growth segments, or new product uses.
More effective and efficient matching of company resources to targeted market segments promises the greatest return on marketing investment (ROMI).
Market segmentation is the division of a market into different groups of customers with distinctly similar needs and product/service requirements.
Skirts are more colorful, use lighter fabrics, and a very short hemline; This is exactly what Marks and Spencer (M&S) did to attract a younger female shopper. A range of female clothing called Per Una
marketers have to design product and service offerings
around consumer demand (market segmentation) more than around their own production needs (product differentiation) and they use market research to inform this process.
Segmentation criteria for consumer markets
Using demographic criteria to profile who the market is and where they are;
▪ age, gender, family size and lifecycle, generation, income, occupation, education, ethnicity, nationality, religion, and social class.
Age is a common way of segmenting markets and it is normally the first way. (MILO vs. RedBull)
Gender differences;
products targeted at women
▪ ▪ ▪ ▪ beauty products and fragrances (e.g. Clinique, Bobby Brown, Chanel) magazines (e.g. New Woman, Cleo, Cosmopolitan); hairdressing (e.g. Pantene,Clairol); and
