A New Spatial Classification Methodology for Simultaneous Segmentation, Targeting, and Positioning (STP Analysis) for Marketing Research

Naresh K. Malhotra (ed.) Review of Marketing Research, Volume 5, Emerald Group Publishing Limited, pp. 75 - 103

Georgetown McDonough School of Business Research Paper No. 2795743

Posted: 24 Jun 2016

See all articles by Wayne S. DeSarbo

Wayne S. DeSarbo

Pennsylvania State University

Simon J. Blanchard

Georgetown University - Robert Emmett McDonough School of Business

Selin Atalay

Frankfurt School of Finance and Management

Date Written: 2008

Abstract

The Segmentation-Targeting-Positioning (STP) process is the foundation of all marketing strategy. This chapter presents a new constrained clusterwise multidimensional unfolding procedure for performing STP that simultaneously identifies consumer segments, derives a joint space of brand coordinates and segment-level ideal points, and creates a link between specified product attributes and brand locations in the derived joint space. This latter feature permits a variety of policy simulations by brand(s), as well as subsequent positioning optimization and targeting. We first begin with a brief review of the STP framework and optimal product positioning literature. The technical details of the proposed procedure are then presented, as well as a description of the various types of simulations and subsequent optimization that can be performed. An application is provided concerning consumers' intentions to buy various competitive brands of portable telephones. The results of the proposed methodology are then compared to a naïve sequential application of multidimensional unfolding, clustering, and correlation/regression analyses with this same communication devices data. Finally, directions for future research are given.

Keywords: Simultaneous Segmentation, STP analysis

Suggested Citation

DeSarbo, Wayne S. and Blanchard, Simon J. and Atalay, A. Selin, A New Spatial Classification Methodology for Simultaneous Segmentation, Targeting, and Positioning (STP Analysis) for Marketing Research (2008). Naresh K. Malhotra (ed.) Review of Marketing Research, Volume 5, Emerald Group Publishing Limited, pp. 75 - 103, Georgetown McDonough School of Business Research Paper No. 2795743, Available at SSRN: https://ssrn.com/abstract=2795743

Wayne S. DeSarbo (Contact Author)

Pennsylvania State University ( email )

University Park
State College, PA 16802
United States

Simon J. Blanchard

Georgetown University - Robert Emmett McDonough School of Business ( email )

3700 O Street, NW
Washington, DC 20057
United States

A. Selin Atalay

Frankfurt School of Finance and Management ( email )

Adickesallee 32-34
Frankfurt am Main, 60322
Germany
60322 (Fax)

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