Lionel is asked to conduct an STP analysis for his firm.The first step he should perform in this analysis is to
A) develop a business mission statement.
B) choose the best target markets.
C) reposition existing segments.
D) divide the marketplace into subgroups.
E) conduct a SWOT analysis.

Question

Quizplus · Accepted Answer

The first step in STP analysis is to divide the marketplace into subgroups based on similarities and differences between consumers. This helps to identify the target market(s) for the firm's products or services. Only after this segmentation is done can the firm move on to identifying the best target markets, repositioning existing segments, conducting a SWOT analysis, and developing a business mission statement.

Lionel Is Asked to Conduct an STP Analysis for His