MKTG: STP Framework

What does market segmentation refer to?

• Selling products to everyone

• Creating small segments within a broad market

• Ignoring customer needs

• Expanding into multiple markets simultaneously

Why is market segmentation important for a company?

• To serve all markets simultaneously

• To reach a narrower group of people

• To avoid understanding customer needs

• To reduce resource efficiency

How is a target market different from a target audience?

• Target market is broader; target audience is narrower

• Target audience is broader; target market is narrower

• They are synonymous terms

• Both are unrelated to marketing strategies

How is evaluating market segments related to profitability?

• By selecting the largest segment

• Based on the segment's size and growth

• Considering competitors and substitute products

• Focusing on less profitable segments

What is the basis of differentiation in gaining a competitive advantage?

• Offering the lowest prices

• Providing more benefits than competitors

• Avoiding differentiation

• Reducing value to customers

How is product positioning defined?

• Market segmentation strategy

• The way consumers define a product in their minds

• Positioning products away from competitors

• Market differentiation