MKTG 341: Consumer Behaviour

Assignment 3: STP Analysis Essay

Segmentation, Targeting, and Positioning in a Real Market Context

 

Course Code	MKTG 341
Course Title	Consumer Behaviour
Assignment Type	Analytical Essay
Assignment Number	Assignment 3 of 3
Academic Level	Undergraduate Year 3–4
Department	Business Administration
Semester	Spring 2025–2026
Total Marks	100 marks (30% of final grade)
Word Count	1,500–2,000 words (body text only; title page and reference list excluded)
Submission Format	Microsoft Word (.docx) via the course portal
Due Date	See course portal for the confirmed submission deadline
Referencing Style	Harvard Referencing (author–date)

 

 

1. Assignment Overview

Students who reach the final assignment in this course have spent several weeks working through how and why consumers make decisions. The purpose of Assignment 3 is to bring those frameworks into contact with a real market situation. Specifically, you are asked to select an existing product or service, analyse the consumer market it operates in using the Segmentation, Targeting, and Positioning (STP) framework, and evaluate how well the company has aligned its strategy with the consumers it is trying to reach.

 

The STP model is not simply a checklist. Used well, it is a way of thinking about fit between what a company offers and what a particular group of consumers actually values. The assignment rewards students who move beyond describing what a company does and instead question whether the strategy makes sense given what is known about consumer psychology, motivation, and decision-making.

 

The assignment requires a written essay of 1,500 to 2,000 words. Although you may use subheadings to organise your work, the expectation is that your writing reads as a connected analytical argument rather than a series of disconnected section responses.

 

 

2. Learning Outcomes Assessed

Assignment 3 assesses the following course learning outcomes (CLOs):

 

• CLO 2: Apply consumer behaviour theories and models to explain purchasing decisions in a real market context.
• CLO 3: Conduct a structured STP analysis by identifying relevant segmentation bases, selecting a target segment, and developing a positioning strategy aligned with consumer needs.
• CLO 4: Evaluate the strengths and limitations of a company’s existing consumer targeting approach using academic evidence.
• CLO 5: Produce a well-argued, evidence-based analytical essay using correct Harvard referencing conventions.

 

 

3. Task Description

Select one company and one product or service line for your analysis. The product should be something for which consumer purchasing decisions are reasonably visible and for which some publicly available information exists. Consumer goods, retail services, digital subscription products, food and beverage brands, and personal care products all tend to work well for this type of assignment. Avoid selecting a company that has been used as a primary example in the course lectures.

 

Your essay should address each of the following components. The word allocations below are approximate guides, not strict limits.

 

3.1  Brief Introduction and Company Context (150–200 words)

Introduce the company and the product or service you have selected. State why you chose this particular example and what makes it an interesting case for STP analysis. Keep this section focused and purposeful. A company overview is not the goal here; the goal is to frame the analysis that follows.

 

3.2  Segmentation Analysis (400–500 words)

Identify and apply the most relevant segmentation bases for the selected product’s consumer market. The four standard bases are demographic, psychographic, geographic, and behavioural. Not all four will be equally important for every product, and part of the task is deciding which bases are most meaningful for your chosen case.

 

For each base you discuss, move beyond definition. Show how the segmentation actually manifests in the market for your product, with reference to what is known about the relevant consumer groups. Where academic models of consumer behaviour, such as Maslow’s hierarchy of needs, involvement theory, or lifestyle segmentation frameworks, help explain why certain bases are more relevant, draw on them.

 

3.3  Targeting Strategy (300–350 words)

Based on your segmentation analysis, identify which segment or segments the company appears to be targeting, or which segment you would recommend targeting if you were advising the company. Name the targeting approach, whether undifferentiated, differentiated, concentrated, or micromarketing, and justify that choice with reference to the characteristics of the segment and the company’s resources and positioning.

 

Consider the following when developing this section: How attractive is the target segment in terms of size, growth potential, and accessibility? Are there segments being under-served or overlooked that could represent an opportunity? Does the current targeting approach appear consistent with what the company communicates through its marketing?

 

3.4  Positioning and Value Proposition (350–400 words)

Develop a positioning statement for the selected product aimed at the target segment you identified. A positioning statement should specify the target segment, the product category, the key benefit offered, and the reason the consumer should believe that claim. It does not need to be a formal one-sentence template, but it should convey those four elements clearly.

 

After presenting the positioning statement, explain how the company’s existing marketing activity, covering advertising tone, price point, distribution channels, and product design, either supports or contradicts that positioning. Where there are gaps between intended and actual positioning, identify them and suggest what might account for the difference.

 

3.5  Critical Reflection (250–300 words)

No STP strategy works perfectly in practice, and most carry trade-offs that are not always acknowledged. Reflect critically on the limitations of the strategy you have described. You might consider questions such as: Has the company segmented the market too broadly or too narrowly? Are there cultural or demographic shifts in the GCC or wider region that may affect the relevance of the current targeting approach over the next three to five years? Could the positioning be perceived differently by different sub-groups within the target segment?

 

Draw on at least one academic source to support your critical reflection. Personal opinion alone does not constitute analysis at this level.

 

 

4. Submission Requirements

4.1  Format

• Word count: 1,500–2,000 words for the body of the essay. The title page, reference list, and any appendices are excluded from the count.
• Font: Arial or Times New Roman, 12pt throughout.
• Line spacing: 1.5 for body text.
• Margins: 2.54 cm (1 inch) on all sides.
• File type: Microsoft Word (.docx). Submit via the course portal only.
• Title page: Include your full name, student ID, course code, assignment title, and submission date.

 

4.2  Referencing

A minimum of five academic sources is required, with at least three drawn from peer-reviewed journals published between 2018 and 2026. Industry sources, company reports, and credible news publications may be used in addition but do not replace the peer-reviewed minimum.

 

Harvard referencing applies throughout. In-text citations should follow the author–date format, and the reference list at the end of the essay must include full publication details. Sources must be listed alphabetically by the first author’s surname.

 

4.3  Academic Integrity

All submitted work must be independently produced by you. Collaboration with classmates at the idea-sharing stage is acceptable, but the writing, analysis, and conclusions must be your own. Submitting work that has been produced using AI writing tools, in whole or in part, without prior written approval from the course instructor constitutes an academic integrity violation and will be handled under the university’s policy. If you are uncertain about what counts as acceptable use of such tools, ask before submitting.

 

 

5. Marking Rubric

The criteria below describe what markers are looking for at each performance level. Read these carefully before you begin writing. The most significant mark differentiator at this level tends to be the depth of critical engagement rather than the coverage of content.

 

Criterion	Excellent (90–100%)	Proficient (75–89%)	Developing (60–74%)	Inadequate (0–59%)	Marks
1. Identification and Application of Segmentation Bases Accuracy and depth in identifying and applying demographic, psychographic, behavioural, and geographic bases.	All four bases applied correctly with specific, relevant examples drawn directly from the chosen market; discussion integrates theory and evidence fluently.	Three or four bases addressed with mostly accurate application; examples are present but occasionally generic.	Two bases described with limited accuracy; examples are vague or not clearly tied to the chosen market.	One or no bases addressed; significant inaccuracies or absence of market-specific application.	25
2. Targeting Strategy Clarity and justification of the recommended targeting approach (undifferentiated, differentiated, concentrated, or micromarketing).	Targeting strategy is clearly named, justified with evidence, and connected logically to the segmentation analysis; trade-offs are acknowledged.	Strategy identified and reasonably justified; limited engagement with trade-offs or alternative approaches.	Strategy named but justification is weak or disconnected from the segmentation analysis.	No clear targeting strategy identified, or recommendation is unsupported.	20
3. Positioning and Value Proposition Alignment between the identified segment(s), the proposed positioning statement, and the company’s value proposition.	Positioning statement is specific, realistic, and aligned with segment needs and the competitive context; value proposition is clearly articulated.	Positioning broadly aligned with the segment; minor inconsistencies between the positioning and the value proposition.	Positioning statement present but generic or partially misaligned with segment insights.	No positioning statement, or one that bears little relation to the analysis.	20
4. Critical Reflection Ability to assess the limitations of the proposed STP strategy and consider alternative approaches.	Balanced, evidence-supported critical reflection that identifies specific limitations and at least one credible alternative approach; engages with academic sources.	Some critical reflection offered; limitations identified but analysis remains surface-level.	Minimal critical reflection; response is largely descriptive with few or no limitations acknowledged.	No critical reflection, or comments are purely opinion-based with no academic support.	20
5. Academic Writing and Referencing Clarity, structure, referencing accuracy, and adherence to Harvard format and word count.	Well-organised, clearly written; all sources correctly cited in Harvard style; word count within the stated range.	Generally clear with minor structural or referencing issues; word count broadly met.	Inconsistent structure or referencing; word count noticeably short or over.	Poor organisation, absent or incorrect referencing; word count significantly outside range.	15
Total					100

 

 

6. Guidance Notes for Students

6.1  On Choosing Your Company

The quality of your analysis depends heavily on your ability to find supporting evidence. Companies that publish annual reports, investor communications, or press coverage of their marketing activities give you much more to work with than niche or private companies. If you have a personal interest in a particular brand or product category, that can be an advantage, provided you remain analytical rather than promotional in your writing.

 

6.2  On Avoiding Description

A common pattern in assignments at this stage is to describe the four segmentation bases in turn and then simply state which segment a company targets. That approach typically earns marks in the Developing range. To move into Proficient or Excellent territory, you need to evaluate. Ask why a company segments the market in a particular way, whether the chosen bases are the right ones, and whether the targeting and positioning decisions follow logically from the segmentation. These evaluative moves are what separate an analytical essay from a summary.

 

6.3  On the Positioning Statement

Students sometimes confuse a brand tagline or advertising slogan with a positioning statement. A slogan is the public-facing output of a positioning strategy. A positioning statement is an internal strategic tool that explains the strategy behind the slogan. You are being asked to develop or reconstruct the positioning statement, not copy the tagline.

 

6.4  Useful Starting Points for Research

• Solomon, M.R. (2020) Consumer Behaviour: Buying, Having, and Being, 13th edn. Pearson. Core textbook for segmentation, motivation, and lifestyle frameworks.
• Dolnicar, S., Grün, B. and Leisch, F. (2018) Market Segmentation Analysis. Springer Singapore. Open access and freely available via the DOI link in the reference list below.
• Journal of Consumer Research, Journal of Marketing, and the Journal of the Academy of Marketing Science. Strong peer-reviewed sources for empirical work on consumer behaviour and targeting.
• Euromonitor International and Statista. Useful for regional consumer market data and segment size estimates, especially for GCC markets.

 

 

7. Suggested Academic References

All four references below have been verified and are accessible via the linked DOIs or through the university library. You are expected to source additional references independently.

 

Chea, A.C. (2024) ‘Market segmentation strategies: analysis, practice, and marketing implications’, Journal of Applied Business and Economics, 26(4). Available at: https://doi.org/10.33423/jabe.v26i4.7177 (Accessed: March 2026).

Dolnicar, S., Grün, B. and Leisch, F. (2018) Market Segmentation Analysis: Understanding It, Doing It, and Making It Useful. Singapore: Springer. Available at: https://doi.org/10.1007/978-981-10-8818-6 (Accessed: March 2026).

Wichmann, J.R.K., Uppal, A., Sharma, A. and Dekimpe, M.G. (2022) ‘A global perspective on the marketing mix across time and space’, International Journal of Research in Marketing, 39(2), pp. 502–521. Available at: https://doi.org/10.1016/j.ijresmar.2021.09.001 (Accessed: March 2026).

Lim, W.M. (2021) ‘A marketing mix typology for integrated care: the 10 Ps’, Journal of Strategic Marketing, 29(5), pp. 453–469. Available at: https://doi.org/10.1080/0965254X.2020.1775683 (Accessed: March 2026).

 

 

Appendix A: Sample Response Excerpt

The excerpt below illustrates the level of analytical depth expected. It does not represent a complete or model answer and is provided for tone and approach only.

 

Sephora’s consumer market in the GCC region provides a useful case for examining the limits of demographic segmentation alone. Age and income remain standard starting points, but psychographic variables appear to carry more explanatory weight in this context. Lifestyle values related to self-expression, luxury consumption, and beauty as a form of social identity have shaped the brand’s regional positioning in ways that go well beyond what income brackets reveal. Dolnicar, Grün and Leisch (2018, p. 6) argue that ‘data-driven’ segmentation, which bases segment boundaries on observed consumer behaviour rather than assumed demographic categories, tends to produce more actionable groupings. Sephora’s Beauty Insider loyalty programme can be read as a behavioural segmentation tool that collects exactly this kind of purchase-based data over time, allowing the company to refine targeting at the individual level rather than at the broad demographic level. Where the strategy appears less resolved is in the positioning itself. The brand’s emphasis on choice and education sits alongside a premium price positioning that may not translate equally across the GCC’s varied income distribution, raising questions about whether the current undifferentiated approach to pricing within the region may eventually limit market penetration beyond upper-middle-income urban consumers.

 

Note: The in-text citation above references — Dolnicar, S., Grün, B. and Leisch, F. (2018) Market Segmentation Analysis. Singapore: Springer. https://doi.org/10.1007/978-981-10-8818-6

 

 

Appendix B: Assignment Metadata and SEO Details

 

Verified Peer-Reviewed References (Harvard Format)

 

1. Chea, A.C. (2024) ‘Market segmentation strategies: analysis, practice, and marketing implications’, Journal of Applied Business and Economics, 26(4). Available at: https://doi.org/10.33423/jabe.v26i4.7177

 

2. Dolnicar, S., Grün, B. and Leisch, F. (2018) Market Segmentation Analysis: Understanding It, Doing It, and Making It Useful. Singapore: Springer. Available at: https://doi.org/10.1007/978-981-10-8818-6

 

3. Wichmann, J.R.K., Uppal, A., Sharma, A. and Dekimpe, M.G. (2022) ‘A global perspective on the marketing mix across time and space’, International Journal of Research in Marketing, 39(2), pp. 502–521. Available at: https://doi.org/10.1016/j.ijresmar.2021.09.001

 

4. Lim, W.M. (2021) ‘A marketing mix typology for integrated care: the 10 Ps’, Journal of Strategic Marketing, 29(5), pp. 453–469. Available at: https://doi.org/10.1080/0965254X.2020.1775683