STP MODEL IN DETAIL | MARKETING MANAGMENT| L-3|

STP marketing refers to using the STP (Segmentation, Targeting, and Positioning) model to create marketing strategies that focus on customers, discovering, and optimizing marketing towards your target audience and segment.

Since its inception, the STP model has proven to be one of the essential marketing models that marketers can use to refine their marketing strategies, planning, and results. 

The STP model helps us apply marketing principles, the marketing mix, and design marketing plans in our businesses.

Firstly, let’s dive into more in-depth about what is the STP Model in marketing. Secondly, we’ll explain each of the STP model parts individually, explore its role in digital marketing, and finally discover how you can use it to make better marketing decisions in your business.

What is The STP (Segmenting, Targeting, and Positioning) Model?

STP model is for creating marketing segments where companies can achieve a competitive edge to use in their marketing strategies. 

The model helps us discover our most optimal target audiences and segments, determine which segments are the best for us, and help us position our business to the said segments. 

The STP model derives from three steps of creating a segment: Segmentation, Targeting, and Positioning. 

STP Model For Marketing

The STP model’s goal and its use in marketing are to discover profitable marketing segments and identify our target audiences for marketing activities. 

Creating a marketing strategy using the STP model, we build marketing strategies that focus on the target audiences we want to reach and develop and position products in the most optimized way. 

When it comes to digital marketing, understanding our online audience is essential for online marketing strategies; the STP model helps us deliver marketing wins more consistently.

What Is Segmenting in STP In The STP Model

In a nutshell, segmenting in the STP model refers to the methods and actions we use to divide a more extensive market opportunity into more detailed segments, either through research or analytics. 

While segmenting is powerful for understanding your chosen segments’ core characteristics, the way we create the segments can restrict our potential market opportunity if we choose to dilute the segments too much. 

For example, the smaller the segment, the more unrealistic it is for a company to achieve, especially an unprofitable and small segment. On the other hand, starting on small or niche segments can offer a place to start from and grow for starting companies. 

Before segmentation, we need to understand the business goals’ role and whether a segment can get us there. 

We need to create realistic segments that a business can serve. 

Identifying and Creation Of Customer Segments

But first, we need to identify the customer segments. We can use various ways to mold a segment through demographic, geographic, psychographics, behavior characteristics, and data.

Demographic

Age, marital status, gender, employment and education, income

Geographic And Online presence 

Country, regions, cities, neighborhoods

Online channels: what channels do the segments mostly use (social media, search, etc. )

Psychographic

Values, personality, lifestyle, attitudes, interests 

Behavioral characteristics 

How does the segment use products

What do they want from the products?

How they behave on your online platforms (website analytics)

For measuring how realistic a segment is in our case, we use targeting of the STP model. 

What Is Targeting In The STP Model

After creating our segments, then we have to choose which ones work best. Targeting in the STP model refers to choosing the right segments to target and plan its marketing activities. 

The goal of targeting is to research each segment’s business opportunities and choose the one that aligns with our goals.