STP Framework

y Segmentation y Targeting y Positioning Following these steps leads to the formal marketing approach. Segmentation Splitting customers, or potential customers, into different groups segments within which customers have a similar level of needs and interests in the offered product or service. Within segments >> Maximum similarities. Across all segments >> Maximum difference. Selecting Criteria y y y y y Responsiveness Substantiality Measurability Actionable Accessibility >> through the promotional mix Advertising- personal selling- PR- sales promotions Targeting Concentrating the marketing and communication efforts on one or few key segments. Positioning Marketing efforts aimed to occupy a brand in a distinct position in the mind of customers against competing brands. Position VS Positioning Position: How customers actually perceive your brand.

Positioning: Marketing efforts to position the brand in the mind of customers. How to position a brand? Emphasize the distinguishing features of the product, and push the desired image through communication channels - advertising mainly. y Brands should frequently check the positioning validity with the surrounding business environment and trends. y Positioning should be desirable by the target market. y Positioning should be unique not easily imitated. Repositioning Redefining the positioning strategy of the company with new marketing efforts aimed to occupy the brand in a new position, in the mind of customers. When to reposition a brand? y Positioning became irrelevant or outdated y Strong competition with superior value proposition is dominating the market y A confusing brand image y The organization is entering a new business scope that is not relevant with the current positioning y Broadening the brand appeal to additional type of consumers.