What is Positioning?
The activity of positioning involves placing the product/service in the minds of the target customers and making the image of the product/service superior as compared to other similar products. Various factors affect the process of positioning such as:
- The larger the size of the target market, the more it will be difficult to position the product/service.
- If there is no competition in the market, then the business can create a completely different and new market positioning strategy.
- If the product has already a good brand value, then it will be of advantage to the business to position any new product/service.
- If the company decides to offer fewer prices for its product/service than the rival firms, then the business can have an advantage in market positioning.
For example
Starbucks wanted to make itself ‘The Third Home’ between home and work so that people can come and relax whenever they are tired. They decided to target customers with medium and high-level income. Starbucks uses the following taglines to strengthen its positioning in the market:
- 100% Recycled Paper Use
- The Finest Milk Use
- The Best Coffee
- Rich & Smooth Flavours
- Natural & Clean
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