How to Build an STP Marketing Strategy
Step 1: Define Your Market:
The global market is vast. To aim at your audience efficiently, you have to come up with a niche. Think of factors like Total Available Market (TAM), Serviceable Available Market (SAM), and Serviceable Obtainable Market (SOM) which will help you know the size of the overall market, the part of it that is right for your product or service and what section can realistically be reached out to.
Step 2: Create Audience Segments:
Now that you’ve defined your market, divide it further based on demographics (age, income), geographics (location), psychographics (interests, lifestyle) as well as behavioral patterns (purchase history, website visits). The more levels deep this goes; more accurate will be different segments within your audience.
Step 3: Develop Segment Profiles:
You should develop detailed profiles for each of your viable market segments. These should include descriptions of their needs, behaviors, demographics, brand preferences and how they shop. This will enable you to compare them and select the ones most suitable for targeting with your marketing efforts.
Step 4: Evaluate Segment Attractiveness:
Collate findings from market data and client studies against each other in order to evaluate the attractiveness of different segments. Important things to think about are the size of each segment, its growth rate, price sensitivity as well as brand loyalty levels shown by members of these segments towards certain products or services. Identify the segments with the highest potential return on investment (ROI).
Step 5: Select Target Audience(s):
From your research and segment attractiveness, select the target audience(s) which best fit into your business strategy as well as overall objectives. Consider aspects such as segment size, competition levels and potential growth among others
Step 6: Develop a Positioning Strategy:
Devise what sets you apart from other players in your industry that will also be appealing to those you want to reach out to with this message.This can include but is not limited to being better than what is currently available (category-based), meeting specific needs or preferences of consumers (consumer-based), offering something different / unique while also being aware about who else has done it before them(competitor-based) and highlighting the advantages that customers stand gaining if they buy into it(benefit- based )
Step 7: Choose Your Marketing Mix:
The final step is to implement your STP marketing strategy. Develop a “marketing mix” that fits where you have position your brand plus gets the attention of the people you have identified as your consumers. The mixture of marketing stands for Product (features, design, quality); Price (pricing strategies, discounts); Place (distributive channels); and Promotion (marketing communications).
STP Marketing – Segmentation, Targeting, and Positioning
Reaching the right people with your business’s message is key. That’s where the STP marketing model comes in handy. STP stands for Segmentation, Targeting, and Positioning. It’s a strategy that helps businesses figure out who their most important customers are, focus their marketing efforts on these groups, and make sure their brand stands out from the competition.
Here, we’ll break down the STP model into easy-to-understand parts and show you how to use it to improve your marketing.
Table of Content
- What is STP?
- What is Segmentation?
- What is Targeting?
- What is Positioning?
- Importance of STP Marketing
- Benefits of STP Marketing
- Relationship between Segmentation, Targeting, and Positioning
- STP Marketing Example
- How to Build an STP Marketing Strategy
- Conclusion
- Frequently Asked Questions on STP