STP is the strategic core of marketing. Instead of trying to sell to everyone, firms choose the right customers and create a clear value position in their mind.
A simple exam line: STP comes before the marketing mix. First decide the customer and positioning; then decide Product, Price, Place and Promotion.
STP helps a firm to:
A segment is useful if it is:
(MSADA is an easy mnemonic.)
Common bases:
Exam tip: give 1 example for each base.
B2B segmentation often uses:
Example: a software company targeting SMEs vs large enterprises.
Access the complete note and unlock all topic-wise content
It's free and takes just 5 seconds
From this topic
A good market segment should be:
These conditions ensure segmentation is practical and profitable.
Consumer markets can be segmented on different bases. Any three with examples:
Examples help show practical understanding.
Marketing management is “planning, organising, controlling and implementing of marketing programmes, policies, strategies and tactics designed to create and satisfy the demand for the firms' product offerings or services as a means of generating an acceptable profit.”
Download this note as PDF at no cost
If any AD appears on download click please wait for 30sec till it gets completed and then close it, you will be redirected to pdf/ppt notes page.
STP is the strategic core of marketing. Instead of trying to sell to everyone, firms choose the right customers and create a clear value position in their mind.
A simple exam line: STP comes before the marketing mix. First decide the customer and positioning; then decide Product, Price, Place and Promotion.
STP helps a firm to:
A segment is useful if it is:
(MSADA is an easy mnemonic.)
Common bases:
Exam tip: give 1 example for each base.
B2B segmentation often uses:
Example: a software company targeting SMEs vs large enterprises.
After segmenting, the firm evaluates segments on:
In exams, write these as “attractiveness + company fit”.
Positioning means creating a strong brand place in the mind of target customers.
Steps (simple):
A standard positioning statement format:
Differentiation can be built by:
Good differentiation must be meaningful and hard to copy.
A perceptual map shows how customers perceive brands on two key attributes.
Example attributes:
Quality (High)
^
| Brand C (High price, high quality)
| Brand B
|
| Brand A (Low price, medium quality)
+------------------------------> Price (High)
Low
Interpretation:
If these notes helped you, a quick review supports the project and helps more students find it.
STP is a strategic approach that helps a firm choose the right customers and create a strong brand position before deciding the marketing mix.
Link with marketing mix:
Thus, STP ensures marketing mix is customer-focused and creates competitive advantage.