Segmentation, Targeting, and Positioning (STP)
- You're launching a new smartphone.
- Would you market it the same way to teenagers, business professionals, and retirees? Probably not.
- Each group has unique needs and preferences.
This is where segmentation, targeting, and positioning (STP) come in, a strategic framework that helps businesses tailor their marketing efforts to specific audiences.
Segmentation: Dividing the Market into Distinct Groups
Segmentation
Segmentation is the process of dividing a market into smaller, distinct groups of consumers who share similar characteristics or needs.
By identifying these segments, businesses can better understand their customers and create more effective marketing strategies.
Types of Market Segmentation
Geographic Segmentation: Dividing the market based on location, such as country, region, or climate.
ExampleA clothing brand might sell warm coats in colder regions and lightweight clothing in tropical areas.
Demographic Segmentation: Categorizing consumers by age, gender, income, education, or family size.
ExampleA toy company might target children aged 3-5, while a luxury car brand focuses on high-income earners.
Psychographic Segmentation: Grouping consumers based on lifestyle, values, or personality traits.
ExampleA travel agency might offer adventure trips for thrill-seekers and relaxing vacations for those seeking tranquility.
Behavioral Segmentation: Segmenting based on consumer behavior, such as purchasing habits, brand loyalty, or usage frequency.
ExampleA streaming service might target heavy users with premium plans and occasional users with basic options.
NoteEffective segmentation allows businesses to focus their resources on the most promising customer groups, leading to higher sales and better customer satisfaction.
Targeting: Selecting Specific Segments to Focus On
Targeting
Targeting is the process of choosing which market segments to focus marketing efforts on.
- Not all segments are equally valuable, so businesses must evaluate them based on criteria such as:
- Size and Growth: Is the segment large enough and growing?
- Profitability: Can the segment generate sufficient revenue?
- Accessibility: Can the business effectively reach and serve the segment?
- Alignment with Objectives: Does the segment align with the company's goals and capabilities?
Targeting Strategies
Mass Marketing: Targeting the entire market with a single strategy.
