STP marketing

STP marketing is the process in how companies can break down markets into smaller, more manageable and identifiable groups to aim different products at; by Segmenting, Targeting and Positioning.

Segmentation

Segmentation is dividing the market into subcategories using elements of four different types of variants; demographic, geographic, psycho graphic and behavioral. "Segmentation is based on the fact that consumers have different needs" (Boddy, 2008)

Using demographics is the easiest way to segment a market from factors such as age, gender, race etc. A lot of business use demography as a way to segment the market as a lot of products created are specific to these factors, such as make up for women or nappies for babies.

Geographic are more used by global businesses such as HSBC who even though a global company aim very local in each segment of their market. However its not always global, it can be on a national scale such as selling surf boards to those on the coast.

Psycho graphic segmentation focus's on variants such as lifestyles and personal characteristics, for example those that play rugby. A company would not aim products such as rugby balls or gum shields at a market that have no interest in rugby.
Finally Behavioural factors are another way to segment a market. This is the hardest way to segment the market as to do so in this way the company would first have to collect data in relevance to consumers relationship with their brand and products and how they use and respond to them, where as a lot of demographic data is already collated. but an example of this would probably be best to look at Christmas. Many people may buy a box of Thornton's chocolates for themselves, but some may buy chocolates as gifts. I think this is why Thornton's offer gift rapping as well as just the product.

Targeting

Targeting is where a company assesses each segment of the market and looks for the most suitable and attractive option to them.

To assess segment attraction businesses can use Doyles 5 factors.
Segment Size- Number of potential customers.
The larger the number of potential customers the better it is.
Segment Growth- Whether the market is growing or shrinking
A growing market or one that has high potential to grow is ideal where as a fully saturated market is not. 
Segment Profitability-  Porters 5 forces
How much profit can they get from this segment
Current and Potential Competitors- Competitive analysis and 5 forces
By looking at competitors a company can decide if they can compete with the competition and if there it space for them in the market
Core Capabilities- Looking at core competence and using a SWOT analysis
To look at how good are they are at producing the product

Positioning
http://www.youtube.com/watch?v=7e5h8klbdPE&feature=related
Its all about find the perfect place to fit in.

"Product positioning means thinking about a product in the context of the competitive space it occupies in the market, defined in terms of those attributes that matter to the target marketing" (Brassington and Pettitt, 2007). Positioning then is about finding the appropriate area to place there product within a segment.

Companies can use differentiated or undifferentiated strategies when marketing towards market segments.
An undifferentiated strategy would be where a business uses the same marketing mix, such as coca cola do with their products are not really specific to any characteristic. Where as Brewery's such as Greene King use a differentiated strategy in which they use a different marketing mix for different segments of the market. Where they may sell their products cheaper up north they may b e sold quite expensively in the south and midlands.

The 5 Senses

Adverts, whether it be T.V. radio or still ads, all aim to appeal to one of the five senses. however they do not always aim at the obvious sense, for example its very hard to advertise a perfume because apart from "the scratch and sniff" it is very hard to appeal to smell and show how the product actually smells. so instead they appeal to other senses to show an experience of the product.

TASTE
http://www.youtube.com/watch?v=ey7l02tjw7U&feature=related

The Lynx chocolate advert I think is probably the best example of how a product that is to do with scent uses other senses to appeal to its target market. It appeals to taste which is the chocolate man. it works because everyone knows the taste of chocolate and I think that 99% of people like it so it is a perfect thing to associate with any product and it works for lynx. However they also use touch, by having the women "showing affection" to the user which men will respond to, certainly in a positive way.

SIGHT

 The ad above for the Marc Cain collections which came from an ELLE magazine (my sisters, not mine!), appeals to the sight of the reader by using contrasting light colours to make the focus on the product; as the eye is immediately drawn to the woman due to the bright lighting of her clothing.

HEARING

http://www.youtube.com/watch?v=VwRCBHhyrAA

As a kid I think this was probably one of my favourite adverts even though I wasn't the target market the ad did its job by being memorable, which all comes down to the song. As this is soo catchy and just sticks in your head.

TOUCH

http://www.youtube.com/watch?v=j2DiKOyiHhU&feature=related

Andrex has used the association with the puppy for years. Puppys with out a doubt one of most associated "things" of softness and by andrex using the softness of the puppy it makes the customer think about how soft a puppy actually is and that the toilet roll will be that soft too.

SMELL
http://www.youtube.com/watch?v=j9ztSrboiEI

Perception

I think perception is simply how a person interprets the things they see, hear, taste, smell and feel; and how the react to them, conscious and unconsciously. Sight is probably the most important sense we have and the best way to show how people perceive images differently is through optical illusions.

In both the bottom 2 pictures there are different ways of seeing the picture and how a persons perception works will decide which of the pictures they saw.

 "Perception is the process of sensing, selecting & interpreting consumer stimuli in the external world" (Wilkie 1994)

"the ability to see, hear, or become aware of something through the senses" (Oxford dictionary)

"Perception is our sensory experience of the world around us and involves both the recognition of environmental stimuli and actions in response to these stimuli. Through the perceptual process, we gain information about properties and elements of the environment that are critical to our survival. Perception not only creates our experience of the world around us; it allows us to act within our environment." (Kendry Cherry, http://psychology.about.com/od/sensationandperception/ss/perceptproc.htm)

The link where I found Cherry's interpretation of perception also has some very useful info on how the perceptual process works.




I think this video from YouTube is not only funny but just shows how different minds work.


http://www.youtube.com/watch?v=udxOFMU46Lc

Honestly, I didn't see it first time but I have shown it to a couple of friends and they were surprised I didn't see as it was obvious to them. But I think it was a good example of how easily something can be missed when you are specifically focusing on something else. So when marketing it would be better to put messages out when the mind is open, even if consumers aren't consciously aware of them, I think possibly introducing it onto buses would be a brilliant idea, as I know when I'm on a bus I completely zone out and just stare out the window so why not communicate to the senses whilst consumers are in that state.

My First Blog

My First Days of Uni

Ive been at BNU for 3 weeks now and i am starting to feel the pressure already. There seems to be a ridiculous amount of reading, which would be fine for me if it was a normal book. but these books are incredibly thick worded, like its the same as swimming through custard- really hard to get into and to move through fluently. the assignments at first seem really scary as is not like what Ive ever done before but i think once i start getting into a regime i think i will be fine and maybe slow down on the drinking and social side of things.

since i enrolled on the head start course before actually starting the term i met alot of new people all who were really cool, that's probably the best experience of starting uni, just the meeting new friends who you would never get a chance to otherwise.

The work isn't hard in content wise of what it actually is, its the fact that there is sooo much of it to do and I have to work out how it all interrelates and applies to everything else and then looking at real examples. Its quite overwhelming compared to A level. The thing Ive said to all of my friends about uni is that when u start A level they say its hard work and a lot to do, but realistically you can blag it where as uni its impossible to blag anything and you really have to just get on and do the work.