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How khổng lồ use Segmentation, Targeting, & Positioning (STP) khổng lồ develop sale strategies

Today, the STPhường kinh doanh mã sản phẩm (Segmentation, Targeting, Positioning) is a familiar strategic approach in modern marketing. It is one of the most commonly applied marketing models in practice, with kinh doanh leaders crediting it for efficient, streamlined communications practice.

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STPhường kinh doanh focuses on commercial effectiveness, selecting the most valuable segments for a business và then developing a marketing set và hàng hóa positioning strategy for each segment.

As Martech continues to lớn develop, so bởi opportunities for segmentation, targeting, and positioning. So whether you"re br& new to STP or a seasoned veteran, it can be useful to take stock và double-check you"re utilizing every chance you get khổng lồ reach, interact with, convert and engage customers.

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The STP model is useful when creating sale communications plans since it helps marketers to lớn prioritize propositions and then develop và deliver personalized & relevant messages to engage with different audiences. The three-step funnel consists of market segmentation, market targeting, and hàng hóa positioning.

Within your research-based market segmentation phase, you are aiming to identify a basis for the segmentation of your target customers, và determine important characteristics to differentiate each market segment.

When creating your targeting và positioning strategy, you must evaluate the potential and commercial attractiveness of each segment, và then develop detailed sản phẩm positioning for each selected segment, including a tailored marketing mix based on your knowledge of that segment.


In our poll asking about the most popular sale model STPhường sale won second place, only beaten by the venerable SWOT / TOWs matrix. The popularity of this market-focused mã sản phẩm is a departure from previous kinh doanh approaches that were based more around products rather than customers. In the 1950s, for example, the main marketing strategy was "sản phẩm differentiation".

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Moreover, segmentation, targeting, và positioning is an audience-focused rather than product-focused approach to kinh doanh communications which helps deliver more relevant messages to commercially appealing audiences.


Applying Segmentation, Targeting và Positioning lớn digital communications

STP sale is relevant to lớn digital marketing too at a more tactical communications màn chơi. For example, applying sale personas can help develop more relevant digital communications as shown by these alternative tactical tin nhắn customer segmentation approaches.

This visual from Dave sầu Chaffey of Smart Insights in his book Digital Marketing: Strategy. Implementation và practice shows how Segmentation, Targeting và Positioning apply khổng lồ digital marketing strategy.


It reminds us how digital channels offer new options for targeting audiences that weren"t available previously, but we need lớn reserve sầu sufficient budget for. For example:

Search intent as searchers type keyword when comparing products they are interested in buyingInterest-based targeting in Facebook, e.g. Prospecting for those interested in Gardening, Gym membership, or GolfTargeting through gmail personalization and on-site personalization based on protệp tin, behavior (e.g. nội dung consumed)

There are also new opportunities to make a br& more compelling through offering new types of value to consumers based on a digital value proposition or what Jay Baer has called Youtility. This can be via nội dung or interactive tools on websites or sản phẩm điện thoại apps.

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How lớn use STP.. marketing?

Through segmentation, you can identify niches with specific needs, mature markets to find new customers, deliver more focused & effective sầu kinh doanh messages.

The needs of each segment are the same, so marketing messages should be designed for each segment to emphasise relevant benefits & features required rather than one size fits all for all customer types. This approach is more efficient, delivering the right mix lớn the same group of people, rather than a scattergun approach.

You can segment your existing markets based on nearly any variable, as long as it’s effective sầu as the examples below show:

Well-known ways to segment your audience include:1. Demographics

Breakdown by any combination: age, gender, income, education, ethnicity, marital status, education, household (or business), form size, length of residence, type of residence, or even profession/occupation.

An example is Firefox who sells "coolest things", aimed at a younger male audience. Though, Moshi Monsters, however, is targeted to parents with fun, safe và educational space for younger audiences.

2. Psychographics

This refers khổng lồ "personality và emotions" based on behavior, linked to lớn purchase choices, including attitudes, lifestyle, hobbies, risk aversion, personality, and leadership traits. magazines read và TV. While demographics explain "who" your buyer is, psychographics inform you "why" your customer buys.

There are a few different ways you can gather data lớn help form psychographic profiles for your typical customers.

Interviews: Talk lớn a few people that are broadly representative sầu of your target audience. In-depth interviews let you gather useful qualitative sầu data to really understvà what makes your customers tick. The problem is they can be expensive sầu and difficult lớn conduct, and the small sample size means they may not always be representative sầu of the people you are trying to target.Surveys: Surveys let you reach more people than interviews, but it can be harder lớn get as insightful answers.Customer data: You may have data on what your customers tover khổng lồ purchase from you, such as data coming from loyalty cards if an FMCG br& or from online purchase history if you are an e-commerce business. You can use this data lớn generate insights inlớn what kind of products your customers are interested in và what is likely to make them purchase. For example, does discounting vastly increase their propensity khổng lồ purchase? In which case they might be quite spontaneous.

An example is Virgin Holidays who use segmentation, positioning & targeting to promote their holidays to 6 different audiences.


3. Lifestyle

This refers to lớn Hobbies, recreational pursuits, entertainment, vacations, & other non-work time pursuits.

Companies such as on and off-line magazine will target those with specific hobbies i.e. FourFourTwo for football fans.

Some hobbies are large và well established, & thus relatively easy lớn target, such as the football bạn example. However, some businesses have sầu found great success targeting very small niches very effectively. A great example is the explosion in "prepping" related businesses, which has gone from a little heard of fringe activity to lớn a billion-dollar industry in recent years. Apparently now 3.7 million American"s think of themselves as preppers or survivalists. A great way khổng lồ start researching and targeting these kind of niches is Reddit, where people create subReddits lớn tóm tắt information about a given interest or hobby.

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4. Belief and values

Refers khổng lồ Religious, political, nationalistic, và cultural beliefs và values.

The Islamic Bank of Britain offers Sharia-compliant banking which meets specific religious requirements.

A strange but interesting example of religious demographics influencing sale that you might not have sầu guessed is that Mormons are really into "multi-level marketing". They"re far more likely to lớn be engaged in the practice than any other US group. Going the extra mile with demographic retìm kiếm can lead khổng lồ discovering new marketing opportunities và thinking outside the box. For example, did you know the average age of a Cadillac driver is 47.1 years old? But you don"t tover lớn see them in the oto ads. An opportunity waiting to be seized!

5. Life stages

Life stages are the Chronological benchmarking of people’s lives at different stages.

An example is Saga holidays which are only available for people aged 50+. They claim a large enough segment lớn focus on this life stage.

6. Geography

Drill down by Country, region, area, metropolirã or rural location, population mật độ trùng lặp từ khóa or even climate.

An example is Neiman Marcus, the upmarket department store chain in the USA now delivers to the UK.

7. Behaviour

Refers to lớn the nature of the purchase, br& loyalty, usage màn chơi, benefits sought, distribution channels used, reaction to kinh doanh factors.

In a B2B environment, the benefits sought are often about ‘how soon can it be delivered?’ which includes the ‘last-minute’ segment - the planning in advance segment.

An example is who offers same-day, next day và international parcel deliveries.

8. Benefit

Benefit is the use and satisfaction gained by the consumer.

Smythson Stationery offer similar products khổng lồ other stationery companies, but their clients want the benefit of their signature packaging: tissue-lined Nile Blue boxes & tied with navy ribbon!

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Market targeting

The menu below refers lớn what’s needed lớn evaluate the potential and commercial attractiveness of each segment.

Criteria size: The market must be large enough lớn justify segmenting. If the market is small, it may make it smaller.Difference: Measurable differences must exist between segments.Money: Anticipated profits must exceed the costs of additional marketing plans và other changes.Accessible: Each segment must be accessible to lớn your team và the segment must be able to lớn receive sầu your sale messagesFocus on different benefits: Different segments must need different benefits.

Product positioning

Positioning maps are the last element of the STPhường process. For this lớn work, you need two variables lớn illustrate the market overview.

In the example here, I’ve taken some cars available in the UK. This isn’t a detailed sản phẩm position map, more of an illustration. If there were no cars in one segment it could indicate a market opportunity.


Expanding on the extremely basic example above, you can unpaông chồng the market by mapping your competitors onto lớn a matrix based on key factors that determine purchase.


This chart is not meant to lớn be any kind of accurate representation of the oto market, but rather just illustrate how you could use a hàng hóa positioning bản đồ khổng lồ analyze your own business"s current position in the market, & identify opportunities. For example, as you can see in the gap below, we"ve identified a possible opportunity in the market for low-priced family cars.


We"re not saying this gap actually exists, I"m sure you could think of cars that fit this category, as the car market is an extremely developed và competitive sầu market. However, it does show how you can use the tool to lớn identify gaps in your own market.

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An example of a company using STP marketing?

Any time you suspect there are significant, measurable differences in your market, you should consider STPhường. Especially if you have khổng lồ create a range of different messages for different groups.


A good example of segmentation is BT Plc, the UK’s largest telecoms company. BT has adopted STP. marketing for its varied customer groups; ranging from individual consumers to B2B services for its competitors:

What lớn watch for in segmentation, positioning, & targeting marketing strategy

Make sure the market is large enough to matter và customers can be easily contacted.Apply market research khổng lồ ensure your approach will add value lớn the existing customer experience, above sầu & beyond competitors.As Martech continues to lớn become more sophisticated, to support digital marketers" wants & needs, consider the developments in relation to lớn your product/service.

Original reference sources

Lancaster G. và Massingmê say, L. (1988) Essentials of Marketing. Maidenhead, Berkshire, Engl&. McGraw-Hill.

Smith, W. R. (1956). Product differentiation và market segmentation as alternative sầu kinh doanh strategies. Journal of Marketing. (Vol. 21, Issue 1, July). p3-8.