Have you ever been to a shopping store and been amazed by how many different kinds of food they have? Clearly, companies are meeting a wide range of customer wants by offering various milk brands and cereal brands. How do they decide what to stock, though, and how to best sell those items? Segmentation, targeting, and positioning (STP) are three powerful marketing tools that can help you find the answer.
Let’s say you’re having a party:
Segmentation: This is like putting your guests into groups based on what they like. People who like movies, people who like board games, and people who like music might all be in different groups.
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Targeting: Now you have to choose which group you want to enjoy the most. You might pick the movie fans based on your resources and hobbies.
Positioning: Finally, you think about how to make your party the best for movie fans. You could hang movie ads around, set up a projector, and make popcorn.
Leader’s tip
Know your different types of customers inside and out; make sure your goods, messages, and experiences are tailored to meet their specific needs. This will help you build lasting relationships and loyalty.
How to Apply segmentation targeting and positioning ( STP)in marketing?
Let’s use this in business:
Segmentation: It is the process of dividing your customers into smaller groups (segments) based on things they have in common, like hobbies, needs, or demographics (like age, income, or location). Thus, a clothing company might divide their customers into groups based on age (teens, young adults, adults) or style tastes (casual, formal, athletic).
Targeting: Once you have a list of groups, you pick one or a few to focus your marketing on. To make targeting work, you need to specially tailor tactics for each group. When making this choice, you should think about your resources, the competition, and how profitable each section could be.
Positioning: Once you know who your target customer is, you have to figure out how they will see your product or service in comparison to others on the market. This means coming up with your brand’s message, pointing out what makes you special, and giving your target customers a clear picture of what your business is all about.
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For Example :
Let’s make up a sporting goods company called “Active Life.”
Segmentation: Active Life could divide their customers into groups based on age (teenagers, adults, and seniors), level of exercise (beginner, intermediate, and advanced), and favourite sports (running, yoga, and swimming).
Targeting: Based on market research, Active Life might choose to target young people who are interested in running and are at a beginner or intermediate level.
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Positioning: Active Life can become known as the “go-to” brand for young people who want to reach their fitness goals by wearing comfortable, low-cost running gear. In their marketing tools, they might talk about how the fabrics breathe, how stylish the designs are, and how cheap the prices are.
Leader’s tip
Being flexible is very important; you should always look at how the market is changing, change your segmentation strategies, and place your brand as a force that can adapt to new situations.
Active Life can tailor their marketing message and products to their target group by using STP correctly. This makes it more likely that they will connect with them and lead to sales.
Remember that STP requires ongoing research and adaptation as customer tastes and market trends change.
FAQs
How does segmentation differ from targeting, and why is it essential for marketing success?
Targeting makes strategies fit the needs of specific market categories, while segmentation divides markets into groups. They improve overall business success, relevance, and resonance when used together.
Is it possible to target multiple segments simultaneously, or should a business focus on one primary audience?
Businesses can go after more than one group, but they should decide which ones to focus on based on their resources and goals. To make targeting work, you need to specially tailor tactics for each group.
What role does positioning play in the success of a product or brand, and how often should it be reassessed?
Positioning is what makes a brand unique. To make sure that something stays relevant and resonates, it’s important to reevaluate it often, especially when the market changes.
Can segmentation, targeting, and positioning be applied to service industries as effectively as in product-based businesses?
Yes, the ideas of STP can be changed. Service businesses can divide into groups based on needs, target specific groups of people, and place their products so that they appeal to the most people.
Key Takeaways
- Segmentation helps you narrow your focus; find groups of customers, target them precisely, and make custom positioning strategies for marketing that hits home.
- Personalisation gets people interested; use customer data, align with segmented audiences, and put goods in a way that makes them more relevant and resonate with the market.
- Regular evaluation is very important; STP strategies should be changed based on changes in the market, changing customer behaviours, and new trends to keep marketing working well.