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What is STP Marketing and what role does it play in increasing conversions and revenue? We’ll look at the segmentation, targeting, and positioning framework illustrated with real-life examples.

Segmentation target positioning marketing is a core concept in modern marketing. Without them, marketing campaigns would be generic, have little to no personalization, and overall fail to convert at a level that most businesses would find effective.

Let’s dive into the intricacies of the STP model and see how implementing this framework in your eCommerce store can bring amazing results.

Table of Contents:

1. What is STP Marketing?

2. The STEP formula

3. Benefits of STP Marketing

4. STP Marketing Example: The Coke Wars

5. How to create an STP marketing strategy

What is STP Marketing?

STP Marketing is an acronym for Segmentation, Targeting, and Positioning – a three-tiered model that examines your product or service and how you communicate its benefits to specific customer segments.

In short, the STP marketing model means you segment your market, target selected customer segments with marketing campaigns tailored to their preferences, and adjust your positioning according to their desires and expectations.

STP marketing is effective because it focuses on breaking your customer base into smaller groups, allowing you to create very specific marketing strategies to reach and engage each audience.

In fact, 59% of customers say personalization influences their purchasing decision, and another 44% said a personalized shopping experience would lead them to become a regular customer of a brand.

STP marketing represents a shift from product-centric marketing to customer-centric marketing. This shift gives companies the opportunity to gain a better understanding of who their ideal customers are and how to reach them. In short, the more personalized and targeted your marketing efforts are, the more successful you will be.

The STEP formula

If you’re looking for an easy way to remember and summarize the STP marketing concept, the acronym STEP is extremely useful:

Segmentation + targeting equals positioning

This formula makes it clear that each segment needs a tailor-made positioning and an individual marketing mix in order to be successful. Let’s take a closer look at each of the three steps in the STP marketing model.

segmentation

The first step of the STP marketing model is the segmentation phase. The main goal here is to create different customer segments based on specific criteria and characteristics that you select. The four main types of audience segmentation include:

Geographic Segmentation: Break down your audience by country, region, state, province, etc. Demographic Segmentation: Break down your audience by age, gender, education level, occupation, gender, etc. Behavioral Segmentation: Break down your audience by interaction with your business: what they buy, how often they buy, what they browse, etc. Psychographic segmentation: Segment your audience based on “who” your prospect is: lifestyle, hobbies, activities, opinions, etc.

alignment

Step two of the STP marketing model is targeting. Your main goal here is to look at the segments you created earlier and determine which of those segments are most likely to generate the conversions you want (depending on your marketing campaign, these can range from product sales to micro-conversions like email signups ).

Your ideal segment is one that is actively growing, has high profitability, and has low acquisition costs:

Size: Consider the size of your segment and its future growth potential. Profitability: Consider which of your segments are willing to spend the most money on your product or service. Determine the lifetime value of customers in each segment and compare. Reachability: Consider how easy or difficult it will be for you to reach each segment with your marketing efforts. Consider customer acquisition costs (CACs) for each segment. A higher CAC means lower profitability.

There are limitless factors to consider when choosing an audience – we’ll cover a few more later – so make sure whatever you consider fits your target customer and their needs.

positioning

The final step in this framework is positioning, which allows you to differentiate your product or service from the competition in the minds of your target audience. There are many companies out there that do something similar to yours, so you need to find out what makes you stand out.

All the different factors you considered in the first two steps should have made it easy for you to identify your niche. There are three positioning factors that can help you gain a competitive advantage:

Symbolic Positioning: Boost your customers’ self-image, affiliation, or even ego. The luxury car industry is a great example of this – they serve the same purpose as any other car, but they also boost their customers’ self-esteem and image. Functional positioning: Solve your customers’ problems and offer them real benefits. Experience positioning: Focus on your customers’ emotional connection to your product, service or brand.

The most successful product positioning is a combination of all three factors. One way to visualize this is to create a perception map for your industry. Focus on what matters to your customers and see where you and your competitors land on the map.

A perception map of popular clothing retailers

Benefits of STP Marketing

If you’re not yet convinced that STP marketing will revolutionize your business, we break down the top benefits STP marketing has over a traditional marketing approach.

Because STP focuses on creating an accurate target audience and positioning your products/services to most likely appeal to that audience, your marketing becomes hyper-personalized. With Personalization:

Your brand message becomes more personal and empathetic because you have your customer personas and you know exactly who you’re talking to;

becomes more personal and empathetic because you have your customer personas and you know exactly who you are talking to; Your marketing mix becomes more crystallized and yields a higher return on investment because you no longer waste budget on channels that your audience simply ignores;

becomes more crystallized and achieves a higher return on investment because you no longer waste budget on channels that your audience simply ignores; Your market research and product innovation will be more effective because you know exactly who to turn to for advice and feedback during the development phase.

Recent research from Yieldify shows that ecommerce leaders are adopting personalization at an unprecedented rate – 74% of ecommerce sites now say they have some level of personalization strategy in place. your reasons?

58% found personalization helped increase customer retention, 55% cited conversion, and 45% found personalization actually helped minimize the cost of acquiring a new customer.

Finally, STP marketing levels the playing field. The framework allows small companies and startups to thrive in their niche markets when they would not normally have the reach to compete with the larger companies across the market in their industry.

STP Marketing Examples: The Coke Wars

STP marketing has been around for a long time – and it’s been working for just as long. We’re going to look at a real-world example of STP marketing so you can see how it’s worked in the past in increasing conversions and revenue.

When Pepsi-Cola attempted to capture a portion of Coca-Cola’s market share in the 1980s, Pepsi used segmentation to target specific key audiences. They focused on an attitude and loyalty segmentation approach and divided the market into three consumer segments:

Consumers with a positive attitude towards the Coke brand who have remained 100% loyal to Coke. Consumers with a positive attitude towards the Pepsi brand who have remained 100% loyal to Coke. Consumers with positive attitudes toward both brands, with loyalty to both, who have switched purchases between both brands.

Pepsi had always focused its marketing efforts on the third segment because it was the most attractive and had the highest return on investment. Focusing on coke-loyal customers was seen as a waste of time and money as they were unlikely to change their buying habits.

That all changed with the introduction of New Coke in 1985…

The re-launch of America’s favorite beverage fell short with many loyal consumers, so Pepsi traded in. In fact, as Mental Floss points out, “Coke headquarters was receiving more than 1,500 calls a day, instead of the usual 400 with virtually everyone complaining about the change.”

Sensing the shift in consumer sentiment, Pepsi began targeting loyal Coke drinkers. The competing brand also recalibrated its positioning — Pepsi started drumming up the fact that Coca-Cola had allegedly changed its classic cola with New Coke to more closely resemble the flavor of Pepsi. Their marketing campaigns were brutal (at least in today’s terms):

That same year, Pepsi announced a 14% increase in total product sales. Pepsi was able to use STP marketing strategies to increase its market share and turn Coke-loyal customers into Pepsi lovers.

How to Create an STP Marketing Strategy: The Complete STP Model

We’ve covered the three phases of the STP marketing model, looked at the benefits and examples of this approach. While this gives you an excellent overview of the concept, let’s go into detail on how to create an STP marketing strategy that serves your business.

Below are 7 steps to creating a solid marketing strategy using the complete STP model.

1. Define the market

The global market is far too large and vast for anyone, even the largest company with the most resources, to address. That’s why it’s important to break it down into smaller pieces and clearly define the part you’re aiming for.

Typically, to evaluate your business opportunity, you need to define your TAM, SAM, and SOM: Total Available Market, Serviceable Available Market, and Serviceable Obtainable Market.

Think of it like an iceberg. The very highest view underwater is your SOM – that’s the part of the market you can effectively reach.

SAM is that portion of the total available market that fits your product or service offering. While TAM is the total available market, in other words, “the total revenue opportunity available to a product or service if it achieves 100% market share”.

For example, when Airbnb first started courting investors, they used the TAM, SAM, and SOM model to explain their business potential. Their Total Available Market (TAM) was then estimated at $1.9 billion and included every type of accommodation booked by travelers worldwide.

Because their service offering was more geared towards budget travelers who used online booking engines to find their stay. In this case, the SAM was valued at $532 million. Eventually, her SOM was $10.6 million, representing the revenue Airbnb could earn.

Similarly, for a consumer product, we can look at Diet Coke and say its TAM would span the entire beverage market. Its SAM would narrow it down to soft drinks, and SOM would focus on the carbonated sugar-free drinkers out there.

There are several routes you can take when defining a market. You can do this by:

Industry classification (agriculture, retail, transportation, etc.)

Product Category (Apparel, Health & Beauty, Food & Beverage, etc.)

Country (United States, United Kingdom, etc.)

2. Create audience segments

Now that you’ve adequately defined your target market, it’s time to segment it based on geographic, demographic, behavioral, and psychographic variables.

Each segmentation variable helps you tap into a different aspect of your audience, and by using them together, you can create niche segments that really impact your overall marketing efforts.

For example, if you split your serviceable market into males vs. females (demographic variables), you’re still left with a fairly broad audience segment. However, if you start layering other segmentation variables on top of that, you can create a precise audience that you can most impact.

Perhaps you follow women (demographics) in the United States (geography) who prefer to spend money on luxury products (psychographic), who follow you on social media, or who have visited your website in the past (behaviour).

As you can see, this layering method creates a hyper-focused audience segment that you can use to create a highly personalized experience. And as we mentioned before, personalization has a huge impact on the success of your marketing efforts.

3. Create segment profiles

Once you’ve found your profitable market segments, it’s time to develop segment profiles. Segment profiles are very similar to your ideal customer personas, but act as subsets of your main persona – they are detailed descriptions of the people in each segment.

Describe their needs, behaviors, demographics, brand preferences, shopping characteristics, marital status, and other characteristics. Each profile should be as detailed as possible to give you and your business a good understanding of the potential customers in each segment. This allows you to compare segments for strategy purposes.

4. Evaluate the commercial attractiveness of each segment

Comparing your results with available market data and consumer research will help you assess which of your constructed segments can generate the greatest returns. Consider factors such as segment size, growth rates, price sensitivity, and brand loyalty.

With this information, you can evaluate the overall attractiveness of each segment in terms of dollar value.

5. Select target group(s).

Now that you have detailed information about all of your segments, you need to spend some time deciding which segments are best to use as your audiences. You must consider your overall business strategy, the attractiveness of the segment, and the competition in that segment.

The best way to determine the most profitable segment is to perform a cluster analysis. A fairly complex and technical topic in itself (check out this guide for more insight), clustering in the context of ecommerce segmentation means using mathematical models to identify groups of customers that are more similar than each other in other groups.

Your ideal audience segment is large and growing, and you can reach it with your marketing efforts. You also want a segment that fits your business strategy – there’s no point in focusing your efforts on a segment of men in Australia if you’re phasing out your menswear and not offering free shipping to Australia.

6. Develop a positioning strategy

Next, you need to develop a positioning strategy that will give you the best competitive advantage in the chosen audience. Determine how to effectively position your product in light of other competitors – focus on how your positioning can capture the most market share.

There are several positioning strategy paths you can follow:

Category-Based Positioning – This requires determining how your product or service is better than the existing solutions in the market. Consumer-centric positioning – This requires aligning your product/service offering with the behavioral parameters of the target audience. Competitive-Based Positioning – This is a fairly simple approach aimed at proving that you are better than Competitor X. Benefit-Based Positioning – This requires proving the benefits customers receive from purchasing your product or service. Price-Based Positioning – This requires differentiation based on the value people get when they buy your product/service. Attribute-Based Positioning – Competitors, price, and benefits aside, this requires you to focus on a unique selling proposition that sets your product or service apart from the rest. Prestige-Based Positioning – This requires proof that your products give buyers some status boost. Product Positioning Map – The product positioning map is a technique where the company uses a visual display to position their products to the competition. This allows for easy navigation and understanding of which products are represented versus others, and ultimately helps them make decisions about what should be prioritized or changed based on business needs.

Choose which positioning model makes the most sense based on your previous research and one that will help you reach your specific segment.

7. Choose your marketing mix

The final and final step in this long and tedious process is actually executing your strategy. To do this, you need to establish a marketing mix that will support your positioning and help you reach your chosen audience(s).

A marketing mix consists of the so-called 4 Ps: product, price, place and promotion. The 4Ps are one of the essential marketing models.

Let’s break down what the 4Ps entail:

The product takes into account factors such as variety, quality, design, branding, features, packaging, services, availability and convenience.

takes into account factors such as variety, quality, design, branding, amenities, packaging, service, availability and convenience. The price takes into account factors such as pricing strategy, list price, penetration price, premium, discounts, payment methods, credit terms and payment term. Are your audience segments price sensitive?

takes into account factors such as pricing strategy, list price, penetration price, premium, discounts, payment methods, credit terms and payment term. Are your audience segments price sensitive? Place takes into account factors such as channels, coverage, location, inventory, logistics, and trade channels.

takes into account factors such as channels, reach, location, inventory, logistics and trade channels. Advertising takes into account factors such as digital marketing, public relations, social media, sponsorships, influencer marketing, content marketing, product placement, sales promotions and marketing communications. How do you communicate your value proposition to your audience segments?

A carefully curated marketing mix ensures business success. However, if you leave gaps in it, all the valuable work you have done in the previous stages could be wasted.

Here’s an example to illustrate a bad mix: Let’s say you want to sell a luxury skincare product to women in their 40s.

Her goal is to position it as a high-end addition to her skincare routine, targeting issues related to mature and aging skin. So you invest in print marketing and get your product featured in a couple of popular women’s magazines that cater to the 30+ audience. Also, be sure to price the product appropriately so that it indicates the luxury category.

However, their packaging is cheap and poorly designed while the product itself is sold in drugstores.

This inconsistency, inconsistent with the overall positioning strategy, will keep you from reaching your target audience at all; Those who are reached experience dissatisfaction and the resulting negative word of mouth, which ultimately puts your sales to sleep.

Conclusion

Using the STP (Segmentation Targeting and Positioning) model, companies can identify their most valuable customer segments and create products and marketing communications targeted to those customers. This helps you create engaging, personalized marketing campaigns that convert visitors into customers at high rates.

If you’re looking to use clever segmentation and behavioral targeting methods in your ecommerce marketing strategy, contact Yieldify and we’re here to help!

Frequently asked questions about STP marketing

We all know that marketing is the foundation of any small business. The reason we promote our business is because we want to do more business. Without marketing, our businesses would not exist.

But is it true?

Is your business really successful? Do you know the REAL difference between your business and companies like Nike, McDonald’s, Starbucks, Apple, etc.?

These companies are not successful because they spend more money on marketing than any other company. They were successful because they created a unique identity. No matter what type of business you have or what service you offer, you need to market it in your unique way. You want to make sure people remember your business and when they think of the solution, they think of YOU!

Introduction to STP Marketing

STP stands for segmentation, targeting and positioning. The idea behind this technique is that in order to be successful in marketing, you need to focus on who your customers are, where you will find them, and how you will position yourself alongside the competition.

One of the most important things in marketing is that you need to know your target audience and communicate with them in a way that they understand and respond to.

How does STP help in marketing?

STP helps you identify, find your target audience and create communications that make the competition irrelevant. Let’s see what it means in detail:

Understand what kind of people are interested in your offer. It is important to understand this so that you can communicate with them through a communication channel where they spend their time.

Once you know what type of people are interested in your product or service, the next step is to find and target them. You need to send a message that makes sense to each group and motivates them to reach out and contact you.

Finally, when they contact you, what will you tell them that makes your business unique? The idea is to create a message that sets you apart from the competition.

What are the 3 steps of STP marketing?

The STP marketing model involves three steps – segmentation, targeting and positioning. These three elements are critical to your success as a marketer. If you follow these steps carefully, you can keep the customers you have won for as long as possible.

1- Segmentation

The first step in this process is to segment your audience. This means that you divide them into different groups based on their needs, desires and interests.

You must understand who your customers are and how they behave if you are ever going to be successful as a marketer or any other type of business person.

Once you’ve segmented your customers, you’ll select the ones you find most interesting and target them. You need to focus on those who are likely to spend money with you, and for that reason, it’s best to find out how much they’re making.

2- Alignment

The next step is targeting. Here we get to the heart of marketing. Once you’ve segmented your customers, you need to grab their attention and make them pay attention to you.

You need to learn how your audience communicates online and offline. You can do this by joining relevant forums or fan sites and subscribing to magazines and similar publications.

You can learn more about your target audience through social media – Facebook and Twitter. You can also use hashtags like #retail or #marketing for more targeted results.

3- Positioning

Once you’ve segmented and targeted your customers and figured out where they are, the final step is positioning.

For this step, you need to choose the keywords that your customers will use when they search for products or services like yours. You have to become an authority in your niche if you want people to take you seriously.

You also need to build trust with your customers by offering valuable content and sharing information on social media. This way you can build a relationship with them and in the long run they will feel more inclined to actually buy something from you.

The STP marketing technique is important for your business because it helps you focus on your target audience to attract customers and keep them for as long as possible.

What are the examples of STP marketing?

There are several examples of successful STP marketing cases. Here are some of them:

1- Cola Wars

The Cola Wars between Coca-Cola and Pepsi in the 1980s is a great example of STP marketing. These companies were struggling to become the most popular soft drink, so they needed to get their targeting right.

Coca-Cola has replaced its cola with a “new” cola. They also started promoting by hiring big stars like Michael Jackson and Madonna.

Pepsi continued its sustainable marketing and positioned itself as a new generation soft drink. They also targeted loyal Coke drinkers after Coke introduced the “new” Coke. They did this by positioning themselves as the reason Coke introduced the “new” cola. They could attract the Coke loyalists who preferred the “old” Coke.

Pepsi invested in advertising across multiple channels. They’ve also done a lot of guerrilla marketing, using various tactics to get their target audience to drink Pepsi instead of Coke.

2 iPhone

Apple is another brand using STP marketing by offering the best user experience on the market. The iPhone was launched in 2007 and people loved it. It came with a brand new design and people searched for the new Apple product.

Apple has heavily marketed its product by positioning itself as an innovative product. Everyone wanted to get their hands on the iPhone and learn more about its features.

Today, Apple is one of the largest companies in the world thanks to constant innovation and a strong brand.

3-BT Plc

British Telecom is another great example of STP marketing. The company introduced the STP model to cater to its various customer groups.

They are aimed at individual customers and other customers with different offers. BT has developed many products and services suitable for different customers. This allows them to reach an audience much larger than their original one.

They are also positioning themselves as a forward-thinking company that offers the best technology and attracts more customers.

4- Virgin Holidays

Virgin Holidays is another good example of the successful use of STP marketing. The company created six different segments of its customers. They used segmentation, positioning and targeting to promote holidays.

5- Nike

Nike uses STP marketing to reach a variety of customers. The company positions itself as a sports product and offers different products for different people, such as Air Force 1 shoes, Nike running shoes or Nike+ training programs.

6- McDonald’s

McDonald’s uses targeting by offering different menu items for different demographics. A teenager or college student would go to McDonald’s for a burger, while people who work their morning shift might go for breakfast.

This makes it easier for customers to choose and make them happier with their food. This allows the company to attract a wider audience who will most likely return as customers.

These are just three examples of STP marketing. Many other successful businesses have used this marketing strategy to acquire new loyal customers. As you can see, this is a very effective marketing strategy to consider when planning your next campaign.

How to make STP Marketing work for you?

The STP marketing approach requires you to make several decisions to find your target audience, especially now that there are so many options for businesses looking to expand their brand awareness.

STP works great in today’s digital age because it helps you become an authority in your niche without also spending money on it. In order for STP marketing to work for you, you need to do the following:

You need to consider what strategies work best for your target audience and adjust your strategy accordingly.

You also need to focus on building a relationship with your customer and finding out more about their needs. Only then can you offer them products that your target audience wants.

You need to know who you are supplying and what type of product they are looking for.

The more you know about what they are looking for and what issues they are facing, the easier it will be to build a relationship with them and get them to buy from you.

You need to invest in new digital channels like social media and content marketing for STP marketing to work.

Wrap up

STP marketing helps you grow your business and improve your chances of generating leads when people are searching for something specific.

Generating leads and closing sales is much easier when you have your target audience in mind. You need a powerful marketing strategy to be successful as a business owner.

The more you know about your target audience, the easier it will be to sell them your products. Marketing is key in today’s digital age when people have so many choices about where to shop and what to buy.

Today, the STP (Segmentation, Targeting, Positioning) marketing model is a well-known strategic approach in modern marketing. It’s one of the most widely used marketing models in the field, and marketing leaders praise it for an efficient, streamlined communication practice.

STP Marketing focuses on commercial effectiveness, selects the most valuable segments for a business, and then develops a marketing mix and product positioning strategy for each segment.

As martech evolves, so do opportunities for segmentation, targeting, and positioning. Whether you’re new to STP or a seasoned veteran, it can be useful to take stock and verify that you’re taking every opportunity to reach, engage with, convert and retain customers.

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The STP model is useful in creating marketing communication plans as it helps marketers prioritize offers and then develop and deliver personalized and relevant messages to engage with different audiences. The three-stage funnel consists of market segmentation, market alignment, and product positioning.

In your research-based market segmentation phase, you aim to identify a basis for segmenting your target customers and identify key characteristics to differentiate each market segment.

When creating your targeting and positioning strategy, you must assess each segment’s potential and commercial appeal, and then develop detailed product positioning for each selected segment, including a tailored marketing mix based on your knowledge of that segment.

In our poll of the most popular marketing model, STP marketing took second place, beaten only by the venerable SWOT/TOWs matrix. The popularity of this market-centric model is a departure from previous marketing approaches that were more product-based than customer-based. For example, in the 1950s the main marketing strategy was “product differentiation”.

Additionally, segmentation, targeting and positioning is an audience-centric rather than a product-centric approach to marketing communications that helps convey more relevant messages to commercially appealing audiences.

Application of segmentation, targeting and positioning to digital communication

STP marketing is also relevant to digital marketing at a more tactical communication level. For example, applying marketing personas can help develop more relevant digital communications, as demonstrated by these alternative tactical email customer segmentation approaches.

This image by Dave Chaffey of Smart Insights in his book Digital Marketing: Strategy. Implementation and practice show how segmentation, targeting and positioning can be applied to digital marketing strategy.

It reminds us that digital channels offer new audience targeting options that were previously unavailable, but for which we must allocate sufficient budget. For example:

Search intent when searchers enter keywords when comparing products they want to buy

Interest-based targeting in Facebook, e.g. prospecting for those interested in gardening, gym membership or golf

Targeting through email personalization and on-site personalization based on profile, behavior (e.g. content consumed)

There are also new ways to make a brand more compelling by offering consumers new types of value based on a digital value proposition, or what Jay Baer called youtility. This can be done through content or interactive tools on websites or mobile apps.

How to Use STP Marketing?

Segmentation allows you to identify niches with specific needs and mature markets to find new customers and deliver more focused and effective marketing messages.

Each segment’s needs are the same, so marketing messages should be designed for each segment to highlight relevant benefits and required features, rather than finding a one-size-fits-all for all customer types. This approach is more efficient and provides the right mix for the same group of people than a scattergun approach.

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

Well-known methods of segmenting your audience include:

1. Demographics

Breakdown by any combination: Age, Gender, Income, Education, Ethnicity, Marital Status, Education, Household (or Business), Height, Residence Length, Residence Type, or even Occupation/Occupation.

One example is Firefox, which sells “coolest things” aimed at a younger male audience. However, Moshi Monsters caters to parents with a fun, safe and educational space for a younger audience.

2. Psychography

This refers to “personality and emotions” based on behaviors associated with purchasing decisions, including attitudes, lifestyle, hobbies, risk aversion, personality, and leadership traits. read magazines and watch TV. While demographics explain “who” your buyer is, psychographics tell you “why” your customer is buying.

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There are several ways you can collect data to create psychographic profiles of your typical customers.

Interviews: Talk to a few people who broadly represent your target audience. With in-depth interviews, you can collect useful qualitative data to really understand what makes your customers tick. The problem is that they can be expensive and difficult to conduct, and the small sample size means they may not always be representative of the people you’re trying to target. Polls: Polls reach more people than interviews, but it can be harder to get insightful answers like this. Customer Data: You may have data about what your customers tend to buy from you, e.g. B. Loyalty card data if it is an FMCG brand or online purchase history if you are an e-commerce business. You can use this data to gain insights into what products your customers are interested in and what is likely to persuade them to buy. For example, does a price reduction significantly increase the willingness to buy? In this case, they could be quite spontaneous.

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

3. Lifestyle

This refers to hobbies, pastimes, entertainment, vacations, and other pastimes.

Businesses like online and offline magazines cater to those with specific hobbies, e.g. B. FourFourTwo for football fans.

Some hobbies are large and well-established and therefore relatively easy to attain, such as the football fan example. However, some companies have had great success targeting very small niches very effectively. A great example is the explosion of preparation-related businesses, which have gone from being a little-heard fringe activity to a billion-dollar industry in recent years. Apparently 3.7 million Americans now consider themselves preppers or survivors. A great way to start researching and targeting these types of niches is on Reddit, where people create SubReddits to share information about a specific interest or hobby.

4. Beliefs and Values

Refers to religious, political, nationalistic and cultural beliefs and values.

The Islamic Bank of Britain offers Sharia compliant banking that meets certain religious requirements.

A strange but interesting example of the impact of religious demographics on marketing that you might not have guessed is that Mormons really do dig “multi-level marketing.” They are far more likely to engage in the practice than any other US group.

Taking demographic research one step further can help you discover new marketing opportunities and think outside the box. For example, did you know that the average age of a Cadillac driver is 47.1 years? But you don’t usually see them in the car 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 Vacations, which are only available to those over 50. They claim a large enough segment to focus on this phase of life.

6. Geography

Drill down by country, region, territory, metropolitan or rural location, population density or even climate.

One example is Neiman Marcus, the high-end department store chain from the USA now also delivers to Great Britain.

7. Behavior

Refers to type of purchase, brand loyalty, usage level, benefits sought, distribution channels used, response to marketing factors.

In a B2B environment, desired benefits often revolve around “how quickly can it be delivered?”, which encompasses the “last minute” segment – ​​the advance planning segment.

An example is Parcelmonkey.co.uk which offers same day, next day and international parcel deliveries.

8. Benefit

Utility is the benefit and satisfaction of the consumer.

Smythson Stationery offers similar products to other stationery companies, but their customers want the benefit of their signature packaging: tissue paper lined Nile blue boxes and tied with navy blue ribbon!

market orientation

The list below relates to what is required to evaluate each segment’s potential and commercial appeal.

Size criterion: The market must be large enough to justify segmentation. If the market is small, it can make it smaller.

The market must be big enough to justify segmentation. If the market is small, it can make it smaller. Difference: There must be measurable differences between the segments.

There must be measurable differences between the segments. Money: Expected profits must exceed the cost of additional marketing plans and other changes.

Expected profits must exceed the cost of additional marketing plans and other changes. Accessible: Each segment must be accessible to your team and the segment must be able to receive your marketing messages

Each segment needs to be accessible to your team and the segment needs to be able to receive your marketing messages Focus on different benefits: Different segments need to require different benefits.

product placement

Position maps are the final element of the STP process. For this to work, you need two variables to illustrate the market watch.

In this example I took some cars available in the UK. This is not a detailed product location map, but rather an illustration. If there were no cars in a segment, it could indicate a market opportunity.

Expanding on the extremely simple example above, you can unpack the market by mapping your competitors on a matrix based on key factors driving purchase.

This chart is not intended to be an accurate representation of the auto market, just to illustrate how you can use a product positioning map to analyze your own company’s current position in the market and identify opportunities. For example, as you can see in the gap below, we have identified a potential opportunity in the budget family car market.

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

An example of a company using STP marketing?

Any time you suspect there are significant, measurable differences in your market, you should consider STP. Especially when you need to create a bunch of different messages for different groups.

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

What you should pay attention to when it comes to segmentation, positioning and targeted marketing strategy

Make sure the market is big enough to matter and customers can be easily contacted.

Apply market research to ensure your approach adds value to the existing customer experience, above and beyond the competition.

As martech becomes more sophisticated, be aware of developments related to your product/service to support the wants and needs of digital marketers.

Original sources of supply

Lancaster G. and Massingham, L. (1988) Fundamentals of Marketing. Maidenhead, Berkshire, England. McGraw-Hill.

Smith, W.R. (1956). Product differentiation and market segmentation as alternative marketing strategies. Marketing Magazine. (Vol. 21, Issue 1, July). p3-8.

are you proud of pride

With this STP over barcode system we are rolling out with Puregold, we hope to encourage more Filipinos to go cashless,” said Thomas.

Work on the 14 MLD STP has recently been completed and the other STP of 68 MLD is expected to be completed by August 2019.

Launched on December 22, 2009, STP is a pioneer in creating technology parks in the region and is a complex of huge factories specializing in various manufacturing fields.

As Finance Director, Jill will focus on the development and implementation of the STP’s medium and long-term financial plans.

According to a report by Stephen Archer, Director of Infrastructure Services, “STP plans to add a multimedia facility to the courtroom.”

He described the GfbV as the most disciplined party among other contemporary parties in Sindh that people are associated with.

In addition to the STP, the DOF also uses LED lighting systems to minimize power consumption and a building management system to monitor and control the building facilities such as central air conditioning and other equipment and utilities.

Lawati added that Al Ansab STP’s capacity will reach 125,000 cubic meters per day after the completion of Phase II.

Recalling the ethnic unrest in Sindh in the late 1980s, he said the GfbV was formed to challenge MQM terrorism and protect the Sindhis.