Sometimes the terms of primary and secondary target markets are confused and misunderstood, and a secondary target market is inadvertently referred to as a “second” target market, however this is not correct.
Both primary and secondary … Read more...
Psychographic segmentation is looking at consumer’s lifestyles, activities, and interests. It is a very effective way of understanding the consumer as a “person”.
But how effective is this segmentation approach for marketing purposes? This article explores the advantages and limitations of using psychographic segmentation bases when identifying target markets.
Covered … Read more...
Demographic segmentation is a very common approach to constructing market segments. However, it has a number of limitations on how effective it can be for marketing purposes.
Therefore, given the choice of potential segmentation bases, should you use demographic segmentation? While in most cases you should probably not use demographics … Read more...
STP and STDP are both acronyms for a similar process in marketing, primarily part of market segmentation and its related steps.
STP stands for:
Whereas STDP, with the addition of the D, stands for:
As you can … Read more...
Not necessarily.
There is certainly a significant overlap, and some marketing textbooks will use the term interchangeably. However, there are subtle differences between a concentrated marketing strategy and a niche marketing strategy.
The essence of “niche marketing” is where we … Read more...
Depending upon the marketing textbook that you are reviewing, the process of moving from market segmentation to positioning is sometimes referred to as the STP process, or in some other textbooks, the STDP process.
These are identical processes, with the exception of the STDP approach simply be … Read more...
Please note: This article explains how to build segment profiles using Excel – but a free segmentation tree and segment profiling Excel template is available for free download on this site along with simple video instructions on how to use.
Segment profiles are rich and … Read more...
There are multiple ways to segment a market, but one of the more precise and statistically valid approaches is to use a technique called cluster analysis. Cluster analysis is a tool that is used in lots of disciplines – not just marketing – basically anywhere there is … Read more...
