STP Martketing with Examples
A smaller group valuable
STP marketing (Segmentation, Target Audience Definition and Positioning) is a basic instrument for a marketing plan. This marketing strategy ensures that the market is divided into smaller groups based on specific characteristics, after which the most promising groups are selected and the product or service is positioned in a way that caters to the selected target audience.
How can stp marketing help your business grow
STP marketing is usually implemented during the planning phase of the marketing process, after market research has been conducted to identify the target audience and their needs. Once the target audience has been identified, the next step is to develop a marketing mix (product, price, promotion, and place) that caters to the target audience and can help the business achieve its marketing objectives.
In a nutshell, the STP marketing model means segmenting your market, targeting selected customer segments with marketing campaigns tailored to their preferences, and aligning your positioning with their wants and expectations.
STP marketing is effective because it focuses on dividing your customer base into smaller groups, allowing you to develop very specific marketing strategies to reach and engage with each target audience.
Segmentation
What is market segmentation? Market segmentation is the process of dividing the market and customers into different groups, each of which can be selected as a target for marketing actions. This helps businesses to focus their marketing strategies on specific groups of customers with specific needs and desires, which can lead to greater efficiency and effectiveness of marketing efforts.
Let’s take a look at some examples
If you own a yoga studio, you can’t please everyone with the same service. One way to segment a yoga studio’s customers is to focus on specific groups based on their needs. For example:
- Pregnant women
- Working millennials without children
- Women in their 60s
- Beginners vs. advanced
- Yoga teaching training vs. recreational yogis
By targeting specific target groups, you can tailor your marketing strategies to their needs and desires, which can lead to greater customer satisfaction.
Segment your market
To better understand your market, it is important to answer the following questions:
- Who are your current customers and how does your business benefit from them?
- Which needs does your business already fulfill and which gaps do you want to fill? Who could your new potential customers be?
- Do all your customers have the same needs or do they vary?
Once you have answered the above questions, you can segment your customers by grouping them based on the information you have collected about them. This can help to better align your marketing strategies with the needs of specific customer groups, which can lead to greater satisfaction and better business performance.
How to find this information?
- Look at your current customer base: who are they and what are their common interests, demographic and psychographic characteristics, and values?
- Look at your competitors: do they have a customer base and which target groups are they focusing on? Look for gaps in the market that you can target.
- Conduct traditional market research: online surveys, focus groups, 1:1 interviews.
- Analyze your product or service offering: who would find it useful and who would benefit from what your business offers? Create an ideal customer or buyer persona.
Segmentation
The goal here is to create different customer segments based on specific criteria and characteristics. The four main types of audience segmentation are:
- Geographic segmentation: Dividing customers based on their country, region, state, province, etc.
- Demographic segmentation: Dividing customers based on age, gender, education level, occupation, gender, etc.
- Behavioral segmentation: Dividing customers based on how they interact with the company: what they buy, how frequently they buy, what they browse, etc.
- Psychographic segmentation: Dividing customers based on “who” the potential customer is: lifestyle, hobbies, activities, opinions, etc.
The expected benefits are functional and emotional. What do users have here
- The sentence structure can be improved by rewriting the sentences. For example:
- Instead of “Expected benefits: functional, emotional, what do they get out of it?” can be written as: “The expected benefits are functional and emotional. What do users get out of this?”
- Instead of “User type: light or heavy user” can be written as: “There are two types of users: light and heavy users.”
- Instead of “Purchase behavior: satisfaction, brand loyalty, purchase frequency” can be written as: “Purchase behavior is determined by factors such as satisfaction, brand loyalty, and purchase frequency.”
Primary data include:
● Expected benefits: functional, emotional, what do they get out of it?
● User type: light or heavy user
● Purchase behavior: satisfaction, brand loyalty, purchase frequency
Secondary data include:
● Geographic — country, region, city, population density, climatic conditions.
● Demographic — age, gender, nationality, marital status, family size.
● Sociological — personal income, family income, occupation.
● Psychographic — personality traits, lifestyle, values.
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