Write the full form of ‘STP’ and MLM in Business?

STP

Straight-through processing, banking term where a financial transaction is automatically completed without manual intervention

Multi-level marketing (MLM) is a marketing strategy in which the sales force is compensated not only for sales they generate, but also for the sales of the other salespeople that they recruit , This recruited sales force is referred to as the participant's "down line", and can provide multiple levels of compensation

Straight-through processing (STP) enables the entire trade process for capital market and paymenttransactions to be conducted electronically without the need for re-keying or manual intervention, subject to legal and regulatory restrictions. The process was developed by James Karat in the early's and the concept has also been transferred into other sectors including energy (oil, gas) trading and banking, and financial planning.

Currently, the entire trade lifecycle, from initiation to settlement, is a complex labyrinth of manual processes, taking several days. Such processing for equities transactions is commonly referred to as T+3 processing, as it usually takes three business days from the "Trade" being executed to the trade being settled. Industry practitioners, particularly in the US, viewed STP as meaning at least 'same-day' settlement or faster, ideally minutes or even seconds. The goal was to minimise settlement risk for the execution of a trade and its settlement and clearing to occur simultaneously. However, for this to be achieved, multiple market participants must realize high levels of STP. In particular, transaction data would need to be made available on a just-in-time basis which is a considerably harder goal to achieve for the financial services community than the application of STP alone. After all, STP itself is merely an efficient use of computers for transaction processing.

Historically, STP solutions were needed to help financial market firms move to one-day trade settlement of equity transactions, as well as to meet the global demand resulting from the explosive growth of online trading. Now the concepts of STP are applied to reduce systemic and operational risk and to improve certainty of settlement and minimize operational costs.

When fully realized, STP provides asset managers, brokers and dealers, custodians, banks and other financial services players with tremendous benefits, including greatly shortened processing cycles, reduced settlement risk and lower operating costs. Some industry analysts believe that STP is not an achievable goal in the sense that firms are unlikely to find the cost/benefit to reach% automation. Instead they promote the idea of improving levels of internal STP within a firm while encouraging groups of firms to work together to improve the quality of the automation of transaction information between themselves, either bilaterally or as a community of users (external STP). Other analysts, however, believe that STP will be achieved with the emergence of business process interoperability. As an aside an enabler of STP is Straight-Through Quality, but this should not be considered a complete solution to STP just a tool in helping to achieve an STP implementation.

 

Multi-level marketing (MLM) is a marketing strategy in which the sales force is compensated not only for sales they generate, but also for the sales of the other salespeople that they recruit. This recruited sales force is referred to as the participant's "downline", and can provide multiple levels of compensation.

 I agree with the answer given by TARIG BABIKER AL AMIN   Planning & Researcher , Assistance inspector.

Multi-level marketing (MLM) is a marketing strategy in which the sales force is compensated not only for sales they generate, but also for the sales of the other salespeople that they recruit. This recruited sales force is referred to as the participant's "down line", and can provide multiple levels of compensation. Other terms used for MLM include pyramid selling, network marketing, and referral marketing.

 

The STP process is an important concept in the study and application of marketing. STP stands for Segmentation, Targeting and Positioning.

 

The STP Process demonstrates the links between an overall market and how a company chooses to compete in that market.

STP _ STRAIGHT THROUGH PROCESSING

MLM _ MULTI  LEVEL  MARKTING

Love the answer by Ahmed Abdelrahim!

The STP process is an important concept in the study and application of marketing. The letters STP stand for segmentation, targeting, and positioning. The STP process demonstrates the links between an overall market and how a company chooses to compete in that market. It is sometimes referred to as a process, with segmentation being conducted first, then the selection of one or more target markets and then finally the implementation of positioning. The goal of the STP process is to guide the organization to the development and implementation of an appropriate marketing mix 1.Market segmentation can be defined as:The process of splitting a market into smaller groups with similar product needs or identifiable characteristics, for the purpose of selecting appropriate target markets. 2.Targeting (or target market selection) refers to: An organization’s proactive selection of a suitable market segment (or segments) with the intention of heavily focusing the firm’s marketing offers and activities towards this group of related consumers. And 3. positioning (which is sometimes referred to as product positioning) Positioning is the target market’s perception of the product’s key benefits and features, relative to the offerings of competitive products. STP models There are two alternate models that help to understand the STP process. The introductory model simply uses the three letters of STP to highlight the core elements of the process, of the full market segmentation, targeting and positioning (STP) process Step One – Define the market In the first step in this more detailed model is to clearly define the market that the firm is interested in. This may sound relatively straightforward but it is an important consideration. For example, when Coca-Cola looks at market segmentation they would be unlikely to look at the beverage market overall. Instead they would look at what is known as a sub-market (a more product-market definition). A possible market definition that Coca-Cola could use might be diet cola soft drinks in South America. It is this more precise market definition that is segmented, not the overall beverage market, as it is far too generic and has too many diverse market segments. this more precise market definition that is segmented, not the overall beverage market, as it is far too generic and has too many diverse market segments.  Step Two – Create market segments Once the market has been defined, the next step is to segment the market, using a variety of different segmentation bases/variables in order to construct groups of consumer. In other words, allocate the consumers in the defined market to similar groups (based on market needs, behavior or other characteristics). Step Three – Evaluate the segments for viability After market segments have been developed they are then evaluated using a set criteria to ensure that they are useable and logical. This requires the segments to be assessed against a checklist of factors, such as: are the segments reachable, do they have different groups of needs, are they large enough, and so on. Step Four – Construct segment profiles Once viable market segments have been determined, segment profiles are then developed. Segment profiles are detailed descriptions of the consumers in the segments – describing their needs, behaviors, preferences, demographics, shopping styles, and so on. Often a segment is given a descriptive nickname by the organization. This is much in the same way that the age cohorts of Baby Boomers, Generation X and Generation Y have a name. Step Five – Evaluate the attractiveness of each segment Available market data and consumer research findings are then are added to the description of the segments (the profiles), such as segment size, growth rates, price sensitivity, brand loyalty, and so on. Using this combined information, the firm will then evaluate each market segment on its overall attractiveness. Some form of scoring model will probably be used for this task, resulting in numerical and qualitative scores for each market segment. Step Six – Select target market/s With detailed information on each of the segments now available, the firm then decides which ones are the most appropriate ones to be selected as target markets. There are many factors to consider when choosing a target market. These factors include: firms strategy, the attractiveness of the segment, the competitive rivalry of the segment, the firm’s ability to successfully compete and so on. Step Seven – Develop positioning strategy The next step is to work out how to best compete in the selected target market. Firms need to identify how to position their products/brands in the target market. As it is likely that there are already competitive offerings in the market, the firm needs to work out how they can win market share from established players. Typically this is achieved by being perceived by consumers as being different, unique, superior, or as providing greater value. Step Eight – Develop and implement the marketing mix Once a positioning strategy has been developed, the firm moves to implementation. This is the development of a marketing mix that will support the positioning in the marketplace. This requires suitable products need to be designed and developed, at a suitable price, with suitable distribution channels, and an effective promotional program. Step Nine – Review performance After a period of time, and on a regular basis, the firm needs to revisit the performance of various products and may review their segmentation process in order to reassess their view of the market and to look for new opportunities. While MLM or Multi-level marketing is a strategy that some direct sales companies use to encourage their existing distributors to recruit new distributors by paying the existing distributors a percentage of their recruits' sales. The recruits are known as a distributor's "downline." All distributors also make money through direct sales of products to customers. Amway is an example of a well-known direct-sales company that uses multi-level marketing

Agreed with all.....

Thanks for invitation

STP Process is an important concept in the study and application of marketing. The letters STP stand for Segmentation, Targeting and Positioning.

The STP process demonstrates the links between an overall market and how a company chooses to compete in that market. It is sometimes referred to as a process, with segmentation being conducted first, then the selection of one or more target markets and then finally the implementation of positioning. The goal of the STP process is to guide the organization to the development and implementation of an appropriate marketing mix.

 

Multi-level marketing is a strategy that some direct sales companies use to encourage their existing distributors to recruit new distributors by paying the existing distributors a percentage of their recruits' sales. The recruits are known as a distributor's "downline." All distributors also make money through direct sales of products to customers. Amway is an example of a well-known direct-sales company that uses multi-level marketing.

The STP process for marketing stands for market segmentation, target markets and an overall market and how a company chooses or Position to compete in that market.

Multi-level marketing (MLM) is a marketing strategy in which the sales force is compensated not only for sales they generate, but also for the sales of the other salespeople that they recruit. MLM is one type of direct selling. Most commonly, the salespeople are expected to sell products directly to consumers by means of relationship reference and word of mouth marketing. MLM salespeople not only sell the company's products but also encourage others to join the company as a distributor

 

I agree with the previous answers by my colleagues.