Process Essay

1351 WordsNov 20, 20146 Pages
Define market segmentation & explain the STP process Whole markets are sub-divided into different segments through STP process which refers to undertake the three activities. These are market segmentation, target marketing and positioning. Market segmentation is the division of a market into smaller groups of customers with similar needs or product requirements. To segment consumer markets, consumer criteria includes behavioural (e.g. Where, when and how does my market behave?), psychological (e.g. why does my market behave that way), profile (e.g. who are my market and where are they?) Behavioural methods are product-related of segmenting consumer markets. Purchase, ownership and usage are the three very different behavioural constructs. Purchase information is very useful for marketers to assess on who are their most profitable customers. Data about customer purchases and transactions provide scope for analysing the recency, frequency, and monetary value of purchase. A company may segment a market based on how often a customer use its offerings, these may be in the form of usage frequency, time of usage and usage situations. The logic of segmenting markets on the basis of frequency of relationship, view ship, or patronage of media vehicles is well established. What media channels are used, by whom, where and for how long provides useful insight into reach potential for certain market segments through differing media channels, and also insight into their media lifestyle. For example: urban suggested that heavy and light magazine readership might respond differently to ads with differing creative appeals. Psychological criteria used for segmenting consumer markets include perceptions and attitudes, the lifestyle of customers; and the types of benefits sought. Lifestyles approach relies on the analysis of consumers’ activities, interests, and

More about Process Essay

Open Document