Seminar 2 Discussion 2

Seminar 2 Discussion 2 - Positioning is important because...

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Seminar 2 Discussion 2 What is STP Marketing? Why would it be a valuable technique for an advertising agency? Explain your answer. STP stands for segmenting, targeting, and positioning. Segmenting is breaking the market into smaller, more homogenous segments. Targeting is specifically targeting discrete market segments and positioning is the brand to appeal to the targeted segments. With STP, the firm first divides the marketplace into subgroups or segments, determines which of those segments it should pursue or target, and finally decides how it should position its products and services to best meet the needs of those chosen targets (O’Guinn, Allen, Semenik, 2008, pg 200). Segmentation is to ensure that the elements of the marketing mix, price, distribution, products and promotion, are designed to meet particular needs of different customer groups. The second important part of the STP process is to determine which of the segments uncovered should be targeted. All segments must be distinct, accessible, measurable, and profitable.
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Unformatted text preview: Positioning is important because it is the means by which goods and services can be differentiated from one another and so give consumers a reason to buy. It is a valuable technique for an advertising agency because it enhances a company to be more competitive. You’re able to examine and identify growth opportunities in the market by identifying new customers and/or product uses. References: O’Guinn, T., Allen, A., Semenik, R. (2008). Baker Online: mkt202 – advertising . Mason, OH: Cengage Learning . This way they can reach more people and go after the specific demographics that would be more likely to use the product. Kristin: You are correct and it also makes them more competitive. It’s more difficult for a competitor to attack. You’re able to examine and identify growth opportunities in the market as well as building a greater degree of market sector knowledge and customer loyalty....
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