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Segmentation, Targeting, Positioning
STP, or Segmentation, Targeting, and Positioning, is a strategy that simplifies and streamlines marketing efforts.
Consider Sarah, who opened an herb and edible plant nursery intending to sell to everyone in town.
Although ambitious, this is not always effective, as resources, including time and budget, are limited.
This is where STP helps acknowledge that not everyone is a potential customer.
First, she segments her potential customers into groups based on unique characteristics and needs, such as culinary enthusiasts, gardening beginners, organic gardeners, and urban gardeners.
Next, for targeting, Sarah narrowed her customer base to urban gardeners. It enables her to allocate resources where they are most appreciated.
Finally, she differentiated her nursey from others by positioning it as an herb and edible plant specialist.
Because of STP, Sarah is not targeting everyone; instead, she focuses on the segment that values her products.
STP puts the customer at the center of the marketing strategy, allowing businesses to tailor their offerings and messages to what customers truly value and desire.
Segmentation, Targeting, Positioning
Segmentation, Targeting, and Positioning (STP) are fundamental concepts in marketing that help businesses effectively reach and connect with their target audience.
Segmentation: entails the subdivision of a broad market into groups characterized by similar traits and needs. This process empowers businesses to customize their marketing strategies for each segment, ensuring a more personalized and efficient approach.
Targeting: involves selecting the most viable and attractive segments identified during segmentation. By concentrating resources and efforts on these segments, businesses can maximize their impact and increase the likelihood of success in the market.
Positioning: involves crafting a unique image and identity for a product or brand within the minds of the target audience. It involves highlighting unique features or benefits that set the offering apart from competitors. Effective positioning helps consumers understand a product's value proposition and relevance in relation to their needs and preferences.
Together, these three concepts form a strategic framework that guides businesses in identifying, reaching, and connecting with their ideal customer base, ultimately enhancing the effectiveness of their marketing efforts in a competitive marketplace.