STP (Segmentation, Targeting, Positioning) - THE GURU EPISODE 4

Summary

In The Guru Episode 4, the host delves into the 9 elements of marketing, emphasizing the Strategy, STP (Segmentation, Targeting, Positioning), DMS (Differentiation, Marketing Mix, Selling), and BSP (Branding, Service, Process). The discussion highlights the importance of understanding customer segments, choosing the right target market, and aligning it with the company's positioning. The host also stresses the need for differentiation in marketing tactics and the role of service and process in value management. The episode explores the dynamic nature of marketing, where even established brands like Coca-Cola and Facebook need to adapt and rebrand to stay competitive.

Takeaways

• 📈 The 9 elements of marketing include Strategy (STP, DMS, BSP), Tactics, and Values, with STP standing for Segmentation, Targeting, and Positioning.
• 🎯 Segmentation involves dividing the market into different segments based on various factors like geography, demographics, psychographics, and behavior.
• 📍 Targeting is about selecting which market segments to focus on, considering the limited resources and the need for effective allocation.
• 🏷 Positioning is about how to present a product or service in the market in a way that differentiates it from competitors.
• 🛠️ DMS (Decoding Marketing Strategy) refers to the tactics used in marketing, including the marketing mix and selling strategies.
• 🔄 Repositioning may be necessary when a brand needs to redefine its market position due to changes in the market or competition.
• 🌟 Branding is crucial and must be supported by service and process to maintain its integrity and differentiation.
• 🌐 The script discusses the importance of understanding market size and growth, competitive situation, and competitive advantage when choosing target markets.
• 📱 The example of Huawei is used to illustrate the transition from B2B to B2C and the need for repositioning and differentiation in the market.
• 🌟 It emphasizes the importance of strategic thinking over scientific thinking in marketing, highlighting the need for creativity and adaptability.
• 📚 The speaker references their own work, 'Rethinking Marketing: Sustainable Marketing Enterprise in Asia', to provide insights into the evolution of marketing strategies.

Q & A

What are the key elements discussed in the marketing strategy in this episode?

The key elements discussed are the 9 elements of marketing, which include Strategy (STP: Segmentation, Targeting, Positioning), DMS Tactic, BSP (Service, Process), and Values, with a focus on creating Value.

How does the concept of STP fit into the overall marketing strategy?

STP stands for Segmentation, Targeting, and Positioning. It is part of the overall marketing strategy that helps businesses identify their target customers, segment the market, and position their offerings effectively to meet customer needs.

What role does 'Positioning' play in the marketing strategy?

Positioning is about defining the unique value and competitive advantage of a brand or product in the minds of consumers. It's crucial for distinguishing a brand from competitors and ensuring its relevance to the target market.

Why is 'Segmentation' not limited to demographic factors like price or income level?

Segmentation goes beyond demographics like price or income. It includes geographic, psychographic, and behavioral factors. A creative approach to segmentation allows businesses to identify unique sub-segments and tailor marketing efforts effectively.

How does the script define 'DMS Tactic' in the context of marketing?

DMS Tactic refers to Marketing Mix and Selling strategies. It focuses on tactical elements like product, pricing, promotion, and distribution to support the overall strategy and differentiation.

What is the relationship between 'BSP' and value creation?

'BSP' stands for Service and Process, which are essential for delivering value to customers. Together, BSP forms the Value Management component of the marketing strategy, ensuring that customer expectations are met through efficient service and process management.

How can companies maintain marketing harmony when facing competition?

Companies must ensure that the 9 marketing elements are aligned and harmonious. If these elements (like STP, DMS, and BSP) are not well-coordinated, the company may struggle when competition intensifies. A clear Positioning, Differentiation, and Branding (PDB) is critical.

What example does the script use to explain the importance of 'Repositioning'?

The script uses the example of Huawei, which initially focused on B2B (business-to-business) infrastructure but later had to reposition itself to enter the B2C (business-to-consumer) market with products like smartphones. This required a change in differentiation, branding, and strategy.

How does 'psychographic segmentation' differ from demographic segmentation?

Psychographic segmentation focuses on the attitudes, lifestyles, and behaviors of customers, rather than just demographic factors like age or income. This approach allows businesses to cater to more specific needs and preferences within a broader demographic group.

What are the key factors businesses should evaluate when selecting a target market?

Businesses should consider four key factors: Market Size, Market Growth, Competitive Situation, and Competitive Advantage. These factors help determine whether a segment is large and profitable enough, growing or shrinking, competitive, and if the business has a unique advantage in that market.