This article focuses on the Segmentation, Targeting, and Positioning Model (STP Marketing) and its process. The marketing model consists of three detailed and significant steps. It provides a detailed analysis of your offering of benefits to a targetted audience.
Let’s dig deep to find out more about the marketing model.
STP Marketing – What is the process?
The STP Model stands for:
It can be applied by following the steps mentioned below:
Segmenting your Market
The first step in this marketing model is to segment your market. You need to understand that no matter how efficient your product is, it can’t be the choice of everybody. After realizing this, you perform market segmentation on your customers to divide into different groups.
The formation of groups is performed on the basis of common characteristics and needs. This way, you can alter your approaches to cater to each group’s demands efficiently.
The most common approaches of segmenting your customers are:
- Behavioral: Segment them by analyzing their usage patterns of the product, and gauging their loyalty with the brand.
- Demographic: Segment them on the basis of personal attributes such as age, education, ethnicity, gender, marital status, etc.
- Geographic: Customers can be grouped on the basis of their country of origin.
Targeting your Best Customers
After performing the process of segmentation successfully, the customers are accurately divided into particular groups. This provides ease in finding the most attractive groups to target which can provide benefits to the company.
Since this process holds great significance regarding the company’s growth, there are some factors to keep in mind.
Firstly, the marketing needs to analyze the magnitude of profitability of each segment. Due to the classification of customers into separate groups, it is easier to calculate their effect on the analysis. This analysis should provide an outlook of which segment is the most profitable for the company.
Secondly, the marketing team needs to analyze the scalability factor of each segment. This helps them understand if the group is worthy of the company’s allocation of resources and time. Furthermore, it shows if the group has the potential for steady growth.
Lastly, you should know if your company and its product are capable of serving the current target market.
Positioning your offering
Now, in the final steps of this marketing model, you need to plan how to position your product to your target market. Keeping in mind, now you know your most valuable customer groups.
Base your positioning on the fact that why would these customers purchase your product rather than your counterpart’s. You can be a step ahead by providing different kinds of incentives in the forms of packages or discounts.
Moreover, study the needs of your target group and figure out what problems does your product solves that the opponents are unable to solve.
It will help you understand how your offering is efficiently better than any other opponent’s.
STP Marketing helps you analyze your primary target-able customers so that you can develop products as per their needs. By knowing your targeted audience better, you can develop engagement with them
I hope you enjoyed reading the article regarding the process of STP Marketing for a business. Let me know about your feedback in the comments section below.
Have a nice day!