Marketing Analytics MBA 3 Sem

The Most Important Questions

Antim Prahar
1 Segmentation Targeting Positioning (STP) Framework

•The Segmentation, Targeting, Positioning (STP) framework is a strategic marketing tool used by businesses to identify and understand different customer segments, select the most attractive segments to target, and develop a unique positioning strategy to differentiate their products or services in the marketplace. Here’s an overview of each component of the STP framework:

•1. Segmentation:

•Definition: Segmentation involves dividing the market into distinct groups of customers who share similar characteristics, needs, preferences, or behaviors.

•Steps in Segmentation:

•Identify Segmentation Variables: Determine the criteria or variables that will be used to segment the market, such as demographics (age, gender, income), psychographics (lifestyle, values, attitudes), behavior (purchase behavior, usage patterns), or geographic location.

•Segmentation Analysis: Analyze market data and conduct research to identify meaningful segments within the target market based on the selected segmentation variables. This may involve clustering techniques, factor analysis, or other statistical methods.

•Profile Segments: Develop profiles or personas for each segment, describing their characteristics, needs, preferences, and behaviors. This helps marketers understand the unique requirements of each segment and tailor marketing strategies accordingly.