Essay On STP

How will it affect STP?

STP stands for segmentation, targeting and positioning process that involves taking a close look at your potential customers in order to determine your marketing mix. Targeting and segmentation helps you narrow down the market into more manageable groups so you know which segments to pursue in growing your business.

Afro.J.Bus explains that the generation is an “identifiable group that shares birth, years, age, location and significant life events at critical development stages. Based on the explanation above it creates an expectation of that this individuals from the same generation they would also have similar values, attitude and behaviour therefore members of generations who come of age in lean times or war years tend to think and act differently than those born in peace an abundance, this of life experience shape their unique characteristics, aspirations and expectations.

Income Segmentation

Income is a popular demographic variable for segmenting, since income level influences customers wants and determines their buying power.

1. Generation X in terms of income, they make less money individually than their parents did but higher household income because of more women in the workforce and generation Y many of them grew up in an environment where both parents, working hard to fulfil their needs trying to give them a different life to the one they had e.g they use smartphones they are plugged in 24hours a day 7 days and laptops. Many of the are raised in a dual income or single parent families have been more involved in family purchase everything from groceries to new cars, some of the kids has credit cards co-signed by their parents therefore Jamie Patric Hopkins concludes that the lack of income and hig...

... middle of paper ...

...Mountain Dew, and Red Bull have all been successful marketing to Generation Y. Their success appealing to this segment stems from the fact that they don’t talk down to them or push brands in the face.They allow their simple, high quality brands as well as their passionate customers dothe job for them.Living in a time where everyone can reach them, Generation Y is particularly selective about who they listen to. They do not get their information from marketers, and especially not from the media. They text, instant message, and use the Internet in a variety of ways to get information from their peers and the community. This is where market must go reach generation y.

Teenagers are notoriously unpredictable; what is popular one month can be out‐of‐style the next. At the same time an "in your face, hard sell".Strategy is not effective for reaching Generation Y.