STP marketing stands for segmentation, targeting, and positioning. It is a three-step process that allows for the development of a specific and actionable marketing strategy.

occasion segmentation

This preview shows page 6 – 8 out of 12 pages. a. Geodemographic68. When a firm offers customers a loyalty card for car washes, the firm is employing a type ofsegmentation.

Marketers must also focus their assessments on the potential profitability of each segment, both current and future. Some key factors to keep in mind in this analysis include market growth, market competitiveness, and market access.

The five types of market segmentation include:

• Behavioral Segmentation.
• Psychographic Segmentation.
• Demographic Segmentation.
• Geographic Segmentation.
• Firmographic Segmentation.

Demographic segmentation groups customers and potential customers together by focusing on certain traits that might represent useful markets for a business. ? What are the 5 main different segments for demographics? The five main demographic segments are age, gender, occupation, cultural background, and family status.

Demographic information examples include: age, race, ethnicity, gender, marital status, income, education, and employment.

It includes age, gender, family status, occupation, income, race and religion. Marketing to demographics enables you to better resonate with your customers. Geographics: Region, climate and population density are the key areas that affect your customers’ needs with this type of segmentation.

Three Characteristics of Your Target Market

• Geographic characteristics. Where are your ideal customers located?
• Demographic characteristics. Is your business-to-business company focusing on executive level job titles or a particular industry?
• Psychographic characteristics.

The three activities of a successful targeting strategy that allows you to accomplish this are segmentation, targeting and positioning, typically referred to as STP.

A Good Market Has These 11 Characteristics

• Size. The bigger the market size, the better.
• Urgency. The more urgently people need the products in that market, the better.
• Speed to market.
• High pricing potential.
• Low cost of acquiring new customers.
• Low cost and ease of delivering.
• Uniqueness.
• Low upfront investment.

Characteristics of a Market Economy (free enterprise)

• Private Property.
• Economic Freedom.
• Consumer Sovereignty.
• Competition.
• Profit.
• Voluntary Exchange.
• Limited Government Involvement.

Brief explanations are given for these characteristics of the market system: private property, freedom of enterprise and choice, the role of self-interest, competition, markets and prices, the reliance on technology and capital goods, specialization, use of money, and the active, but limited role of government.

Economic market structures can be grouped into four categories: perfect competition, monopolistic competition, oligopoly, and monopoly.

Private property, Freedom of choice, Motivation of self intrest, competition, limited government.

A free enterprise economy has five important characteristics. They are: economic freedom, voluntary (willing) exchange, private property rights, the profit motive, and competition.

What are the six major characteristics of a pure market economy? Private property, competition, profit incentive, united role of government, freedom of enterprise, and freedom of choice.

A market economy functions under the laws of supply and demand. It is characterized by private ownership, freedom of choice, self-interest, optimized buying and selling platforms, competition, and limited government intervention. Competition drives the market economy as it optimizes efficiency and innovation.

Free market ideology asserts that markets are always good and government regulation – or even government in general – is always bad. Markets create a meritocracy where everyone has an equal opportunity. Success goes to those producing the most value for society.

Disadvantage: Dangers of Profit Motive The primary objective for any company in a free market economy is to make a profit. In many cases, companies may sacrifice worker safety, environmental standards and ethical behavior to achieve those profits.

It contributes to economic growth and transparency. It ensures competitive markets. Consumers’ voices are heard in that their decisions determine what products or services are in demand. Supply and demand create competition, which helps ensure that the best goods or services are provided to consumers at a lower price.

Economic systems can be categorized into four main types: traditional economies, command economies, mixed economies, and market economies.

• Traditional economic system.
• Command economic system.
• Market economic system.
• Mixed system.

This module introduces the three major economic systems: command, market, and mixed.

National economic goals include: efficiency, equity, economic freedom, full employment, economic growth, security, and stability.