Consumer Segmentation and Targeting: Bases, Benefits, STP and Positioning Maps (Overview) Questions

Question 1

Expand STP.

Accepted Answer

STP stands for Segmentation, Targeting and Positioning.

Question 2

Define market segmentation.

Accepted Answer

Market segmentation is the process of dividing a market into groups of consumers with similar needs or characteristics who respond similarly to marketing efforts.

Question 3

What is a target market?

Accepted Answer

A target market is the specific segment or group of consumers selected by a firm to serve.

Question 4

Define positioning.

Accepted Answer

Positioning is creating a distinct image of a brand in the consumer’s mind relative to competitors on important attributes.

Question 5

State any one base of market segmentation.

Accepted Answer

Demographic segmentation (e.g., age, income) is one base of market segmentation.

Question 6

What is a perceptual (positioning) map?

Accepted Answer

A perceptual map is a diagram that shows how consumers perceive and compare brands on two key attributes (e.g., price and quality).

Question 7

Explain the benefits of market segmentation (any three points).

Accepted Answer

Benefits of segmentation (any three):

- Better **customer satisfaction** by matching needs.
- More **efficient marketing** spend by focusing on high potential groups.
- Improved **product design** and communication for each segment.

Hence, segmentation helps a firm compete better and avoid “one offer for all”.

Question 8

Explain any three bases of segmentation with examples.

Accepted Answer

Any three bases with examples:

- **Geographic**: region/climate (rainwear in high rainfall areas).
- **Demographic**: age/income (student plans vs premium plans).
- **Behavioral**: usage/benefits sought (heavy data users).

Different bases help identify groups that respond differently to marketing.

Question 9

What are the requirements of effective segmentation? (Any five)

Accepted Answer

Effective segments should be:

- **Measurable**
- **Substantial**
- **Accessible**
- **Differentiable**
- **Actionable**

Mnemonic: **MSADA**.

Question 10

Explain targeting strategies: undifferentiated, differentiated and concentrated (niche).

Accepted Answer

Targeting strategies:

| Strategy | Meaning |
|---|---|
| **Undifferentiated** | one offer for the whole market |
| **Differentiated** | separate offers for multiple segments |
| **Concentrated (niche)** | focus on one specific segment |

Choice depends on resources, competition and segment attractiveness.

Question 11

Explain psychographic segmentation with suitable examples.

Accepted Answer

**Psychographic segmentation** divides consumers based on **lifestyle**, **values**, personality and interests.

Examples:
- **Fitness lifestyle**: health foods, gym wear.
- **Eco-conscious values**: sustainable products.
- **Luxury lifestyle**: premium brands.

| Variable | Example |
|---|---|
| **Lifestyle** | “active”, “busy professional” |
| **Values** | “eco-friendly”, “status” |

Question 12

What is a positioning statement? Write a simple template and one example.

Accepted Answer

A **positioning statement** clearly states the brand’s target and point of difference.

Template:
“For **(target segment)**, Brand X is **(point of difference)** because **(reason to believe)**.”

Example:
“For **students**, Brand A is a **value smartphone with long battery** because it offers 6000mAh + 1-year warranty at low price.”

Question 13

Explain the STP process with a neat flow chart and a short example.

Accepted Answer

### STP meaning
STP is a strategic approach to match offerings with specific customer groups: **Segmentation → Targeting → Positioning**.

### Flow chart (draw/write)
Market → **Segment** (divide) → **Target** (select) → **Position** (differentiate) → Marketing mix (4Ps)

### Short example (smartphone market)
- **Segmentation**: students, working professionals, gamers.
- **Targeting**: students.
- **Positioning**: “value phone with **long battery** at affordable price.”

### Conclusion
STP improves focus, reduces wastage in marketing spend and increases customer satisfaction.

Question 14

Explain positioning and write a positioning statement. Add a small perceptual map description.

Accepted Answer

**Positioning** means creating a clear and distinct brand image in the consumer’s mind relative to competitors.

### Positioning statement (template)
“For (target segment), Brand X is (point of difference) because (reason to believe).”

Example:
For **students**, Brand A is a **value smartphone** with **long battery** because it offers 6000mAh + 1-year warranty at a low price.

### Perceptual map (description)
Plot brands on two attributes, e.g.:
- X-axis: **Price** (Low → High)
- Y-axis: **Quality/Camera** (Low → High)

Gaps on the map show opportunities for new positioning or repositioning.

### Conclusion
Effective positioning supports brand preference and reduces direct price competition.

Question 15

Differentiate between segmentation, targeting and positioning with a neat table and conclude.

Accepted Answer

Segmentation, targeting and positioning are connected but different steps.

| Step | **Keyword** | What it means |
|---|---|---|
| **Segmentation** | **divide** | group consumers with similar needs |
| **Targeting** | **select** | choose the best segment(s) to serve |
| **Positioning** | **differentiate** | create distinct brand image in mind |

### Conclusion
A firm first divides the market, then selects the most attractive segment, and finally positions its brand to win against competitors.

Consumer Segmentation and Targeting: Bases, Benefits, STP and Positioning Maps (Overview)

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