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Business Strategy and Accounting Basics

A microcontroller maker divided the market by application into automotive, industrial equipment, home appliances and so on, and decided to target the automotive market. It is now promoting "long-term stable supply and high reliability" so that customers recognize its products as positioned differently from competing products. Which STP step does this last effort correspond to?

  1. ASegmentation
  2. BTargeting
  3. CPositioning
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Answer: C. Positioning

STP is a marketing method that proceeds in the order segmentation (dividing the market), targeting (deciding which market to aim at) and positioning (clarifying the company's position). Dividing the market by application is segmentation, aiming at the automotive market is targeting, and showing the targeted customers a value different from competitors so that they recognize the product's position is positioning. In positioning, the positions of the company and its competitors are often drawn on a map with axes such as price and performance, or reliability and breadth of features.

  • A. This is the step of dividing the market by criteria such as age, application or region; it corresponds to dividing the market by application.
  • B. This is the step of deciding which of the segments to aim at; it corresponds to choosing the automotive market.
  • C. Correct. It is the step of clarifying, for customers in the target market, how the company is positioned differently from competitors.
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