The STP Marketing Model is widely known today as it plays a crucial role in increasing the company’s sales by communicating personalised messages to attract the right audience.
STP stands for Segmentation, Targeting and Positioning. This three-step model will help you elevate your sales, but it’s vital to know more about all three steps before you implement it further into your business.
1. Segmentation:
The first step of the STP Model is the Segmentation Stage. The main aim here is to categorize your customers based on different traits and backgrounds. The four types of segmentation include:
- Geographic Segmentation: Segregating your customers based on the country, region, and state that they reside in.
- Demographic Segmentation: Dividing your audience based on their age, occupation, education, gender, etc.
- Psychographic Segmentation: Studying consumers and further dividing them based on their psychological characteristics. For example Lifestyle, interests, attitudes, social status, hobbies, etc.
- Behavioural Segmentation: Dividing and Grouping your audience based on the behaviours they exhibit.
2. Targeting:
The second step of the STP Model is the Targeting Stage. The main aim here is to analyse the consumers you previously segmented and focus on a specific segment that yields good conversions.
Many aspects determine the company’s target decision, such as
- Segment’s Size: How large your segment is and how much it can grow in the future
- Accessibility: How easy it would be to access each segment that you’ve targeted with your marketing efforts/campaigns
- Profitability: Consider which segment would willingly spend the most amount of money on your products.
3. Positioning:
The final step of the STP Model is Positioning. The main aim here is to develop a marketing strategy that sets you apart from your competitors, You have to look for that unique element that will make you stand out and persuade the consumers to buy your products.
Here are 3 approaches you can implement while positioning a product:
- Symbolic Positioning: Consider enhancing the image and belongingness of your customers as they are more likely to be attracted to your products or services if it elevates their social status.
- Functional Positioning: Solve your customer’s problems and come up with benefits that can help them overcome the problem.
- Experiential Positioning: This approach allows you to focus on the connection that the customer has with your product or service.