What is STP in Marketing?
Why is STP important in Marketing? STP is a step conducted before making 4Ps. STP stands for segmentation, targeting, and promotion.
Segmentation
Segmentation is dividing a target market into smaller, more defined categories.
Classify the target market into a smaller group with a similarity based on the facts below.
4 Types of Segmentation
1. Demographic
- Age
- Gender
- Occupation
- Education
- Income
- Social status
- Family situation
- Life stage
- Ethnicity
- Company size
- Industry
- Job function
2. Psychographic
- Personality traits
- Values
- Lifestyle
- Attitudes
- Psychological influence
- Activity, Interest, Opinion
- Motivations
- Subconscious and conscious beliefs
3. Behavioral
- Spending habits
- Rate of usage
- Loyalty status
- Benefits sought
3. Geographic
- Country
- City
- ZIP code
- Climate
- Urban / Rural
Targeting
Targeting is a process of determining which segment to target.
- Customer demand analysis
Which segment to offer?
- all the segments
- Some of the segments
- One specific segment
What factors should be considered?
- Segment size
- Expected growth
- Competitors’ offerings
Positioning
The last step of STP is positioning. Positioning is a process where you map your competitors based on the key factors and see where in the map your business should take place.
- The process of what position the brand wants to build in the field
- Competitor analysis
- Internal analysis
By mapping the targets on the perceptual map, you clarify how your competitors are positioning based on the key factors. You might find a gap and guess to take the position no one took yet.
Summary
When a business wants to make a marketing plan with 4ps, ①which customers to serve& ②how to serve are considered.
①Choose which customers to serve
- Market segmentation (parts of a market)
- Targeting (segments to enter)
②Decide how to serve those customers
- Product differentiation (what makes it different from the competition)
- Marketing positioning
STP helps you understand who you are going to appeal to and how to appeal to them.
Reference:
Marketing: Segmentation - Targeting - Positioning
