STP marketing simplifies the market segmentation process and is one of the most commonly used approaches in modern marketing. The core focus of STP marketing is commercial effectiveness. Marketers use the approach to select the most valuable segments from a target audience and develop a product positioning strategy and marketing mix for each.
- Understanding STP marketing
- The three stages of the STP marketing model
- Key takeaways:
- What are the three stages of STP marketing?
- What does market segmentation comprise in STP marketing?
- What does targetimng comprise in STP marketing?
- What does positioning comprise in STP marketing?
- What is a Market Segmentation?
- What is meant by marketing segmentation?
- Affiliate Marketing
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Understanding STP marketing
When used in the way it is intended, STP marketing fosters communication with a customer segment that is clear, focused, relevant, and most importantly, personalized.
It can also be used to discover new customers and niches or market opportunities that increase the efficiency and ROI of marketing efforts.
The three stages of the STP marketing model
The STP model is an acronym for three stages which are explained below.
The idea of the STP model is to start with a broad, anonymous audience and then determine how different products (or components of the one product) relate to each customer segment.
Market segmentation may be based on:
- Demographic – gender, income, education level, marital status, or occupation.
- Psychographic – political affiliation, hobbies, opinions, personality traits, or attitudes.
- Geographic – neighborhood, city, province, state, shire, country, or region.
- Behavioral – how does the market use the product? This includes how the product was financed, how much it is used, brand loyalty, and the key product benefits sought.
The second stage aims to analyze each segment created earlier to determine which is most likely to generate the desired conversion.
Depending on the campaign, a conversion may encompass the sale of a product or a user signing up for an email newsletter.
The attractiveness of a given segment depends on:
- Size – how large is the segment and what is its potential for growth?
- Difference – there must be a measurable difference between one segment and the next. Without difference, efforts are unnecessarily duplicated.
- Profitability – which segment is willing to spend the most money? Calculate the customer lifetime value (CLV) and compare it with others.
- Ease of reach – to what extent can the segment be reached with a marketing effort? Will it be easy or difficult? Customer acquisition cost (CAC) is an important metric here.
- Benefits – are the benefits specific to the segment? For example, one customer segment of a dairy company may prefer lactose-free milk, while another may prefer goat milk.
Given what it has learned so far, the marketing team must now decide how it wants to communicate with customers.
To make the company’s products and services stand out, it is important to perform competitor analyses and determine the value proposition.
A brand positioning map can also be used to clarify the brand’s unique or desirable attributes.
In terms of product positioning, there are myriad techniques. Some of these include:
- Functional positioning – where a product or service offers a benefit that solves a genuine customer problem.
- Experiential positioning – where the focus is on the emotional connection between the customer and the product, service, or brand.
- Symbolic positioning – where the product is positioned to enhance the self-image, social status, or ego of the customer. Luxury brands touch on these points frequently when marketing to consumers.
- STP marketing is a model that increases the relevance and personalization of marketing messages to a target audience.
- STP marketing fosters communication with a particular customer segment that is clear, focused, relevant, and most importantly, personalized.
- STP marketing is an acronym for three stages: segmentation, targeting, and positioning. The three stages help explain how each segment requires a custom marketing mix and positioning strategy for the best results.
What are the three stages of STP marketing?
What does market segmentation comprise in STP marketing?
In STP, marketing segmentation comprises:
What does targetimng comprise in STP marketing?
In STP, targeting comprises:
- Ease of reach.
What does positioning comprise in STP marketing?
In STP, positioning comprises:
- Functional positioning.
- Experiential positioning.
- Symbolic positioning.
What is a Market Segmentation?
Market segmentation is the process of dividing the market into sub-groups. Market segmentation can be based on characteristics such as age, behaviors, income levels, and more. This process helps to understand what your key customers want, where they are, and how to talk to them effectively.
What is meant by marketing segmentation?
Market segmentation is the process of breaking down the market in potential segments that have specific features and characteristics. Those segments help to drive sales and marketing activities, business experimentation, grow the distribution channels of a business, and build successful marketing strategies that help build strong brands in the marketplace.
Read Next: Market Segmentation.
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