Principles of Marketing

STP MODEL
What is STP Model?

 Segmentation
 Targeting
 Positioning

 is one of the most commonly applied marketing models in practice

 The STP model is useful when creating marketing communications plans
since it helps marketers to prioritise propositions and then develop and deliver
personalised and relevant messages to engage with different audiences.
 focuses on commercial effectiveness, selecting the most valuable segments
for a business and then developing a marketing mix and product positioning
strategy for each segment.

(Reported by Sellote, Niño Kyle & Rezane, Ian)

Market Segmentation
- a marketing strategy that involves dividing a broad target market into subsets
of consumers.
Types of Market Segmentation

 Geographic

One of the first variables that the team could use in their segmentation strategy
is geographic. This would allow the team to break the market into sections by climate,
density, market size, world or states. Many companies use climate if their products or
services rely on the weather, such as snow shovels, melting pavement salt, wave
runners and boats. Our Town USA is more interested in targeting geographic locations
that are located near the park in a 100-mile radius. They believe some customers will fly
in from out of state, so in addition, they will target large-density areas nearby.

 Demographic

Demographic segmentation is extremely important to all marketing departments since

the data is easily available and does drastically affect buying patterns. Age, income,
gender, ethnic background and family life cycle are all important factors of demographic
segmentation. The park is going to use an age range of 2-60 years of age so they can
include kids, teens, parents and even grandparents. The income level would have to be
middle to upper class - $50,000 annual income or above - since park tickets are very
expensive. The amusement park is not a gender-specific product, and ethnicity will also
not affect the overall plan.

 Psychographic

Psychographic segmentation is dividing your market based upon consumer

personality traits, values, attitudes, interests, and lifestyles. Segmentation will
allow you to better develop and market your products because there will be a
more precise match between the product and each segment's needs and wants.

(Reported by Larita, Ehle Jayne & Nodalo, Zillah)

Why is determining a market segment important?

- The better the company is at identifying their potential consumers, the more
successful they will be in delivering products.

How do you determine who your target market is?

- What level of education has your target consumers completed: high school,
college, or university?
 - What other aspects of their lives matter?
- What are your target consumers activities and interests: sports, physical
fitness,shopping, books?
- Are your target consumers easily led or opinionated?
- What is there lifestylelike: conservative, exciting, trendy, economical?
- How much money do they make? This is most significant if you’re selling
relatively expensive or luxury items.
- Is geography a limiting factor for any reason?
- Where do they live?
- What do they do for a living?
- Are you target consumers single, married, or divorced?
- How old are they?
- Are your target consumers male or female?
- What are your target consumers

(Reported by Larita, Ehle Jayne)

Market Targeting
- Also called the Target Market
- Is about attracting customers who will beu what you are selling.
- Your target consumers are those who are most likely to buy from you.
- Target market is a specific group of consumers ar which a company aims its
product and service.
- It selectss the most probable and most logical consumers.

 Substantial
 Financial
 Reachable
 Homogeneous

(Reported by Nodalo, Zillah)

Market Positioning
- It is an effort to influence consumer perception of a brand or product relative
to the perception of completing brands or products.

Its objective is to occupy a clear, unique and advantageous position in the consumer’s
mind
A well-positioned company will beat the competition that has a comparable offering. The
company that clearly articulates what it does, why it's relevant and how it's different
helps customers make better and faster buying decisions.