What is Segmentation?
Segmentation is the first step of the STP strategy. Segmentation is the process of dividing the whole market into small subgroups based on shared characteristics like age, gender, taste, preferences, etc. Customers having similar needs and behaviours are to be put together. A market segment is a portion of the whole market that is expected to respond similarly to a given situation. Segmentation helps the business identify what type of customers they should target to sell their product/service. For these reasons, a company should properly do the segmentation process. Market segmentation can be done based on:
- Psychographic Attributes (lifestyle preferences)
- Geographic Attributes (location)
- Behavioural attributes (habits)
- Demographics (age, gender, etc.)
Once the company is done with the market segmentation process, it can focus on choosing the best segment for its products and/or services. When the segmentation is done correctly, a company can entirely focus on one or more segments, without wasting any time and resources.
For example
Volkswagen Group is responsible for producing brands like Audi, Porsche, Lamborghini, and Ducati. Even after being so expensive, brands still generate a handsome revenue. Volkswagen depicts the importance of perfect market segmentation.
STP Marketing – Segmentation, Targeting, and Positioning
Reaching the right people with your business’s message is key. That’s where the STP marketing model comes in handy. STP stands for Segmentation, Targeting, and Positioning. It’s a strategy that helps businesses figure out who their most important customers are, focus their marketing efforts on these groups, and make sure their brand stands out from the competition.
Here, we’ll break down the STP model into easy-to-understand parts and show you how to use it to improve your marketing.
Table of Content
- What is STP?
- What is Segmentation?
- What is Targeting?
- What is Positioning?
- Importance of STP Marketing
- Benefits of STP Marketing
- Relationship between Segmentation, Targeting, and Positioning
- STP Marketing Example
- How to Build an STP Marketing Strategy
- Conclusion
- Frequently Asked Questions on STP