The STP model is an important tool in the field of marketing and branding. Widely used in marketing strategies. The STP model helps businesses better understand their customers. Optimize marketing efforts and contribute to brand positioning in the market.
What is the STP model?
The STP model is a core model in marketing, consisting of 3 important components: Segmentation, Targeting, and Positioning.
The STP model in marketing helps businesses increase marketing and advertising effectiveness by focusing. Resources on the right customers, understanding their needs and creating a unique and compelling brand position.
What is the STP marketing model?
What is the STP marketing model?
Components in the STP model
The STP model consists of three main components, each of which plays an important role in the marketing and branding process:
The components in the STP model include:
Segmentation
Targeting
Positioning
Segmentation
Customer segmentation is the first element in the STP model. There are four most common customer segments:
Demographics: Segmenting customers based on demographic information such as age, gender, income, occupation, education, family, and so on. Demographics provide basic information about the demographic characteristics of customers and can help shape the pool of potential customers.
Geographic: Segmenting customers based on geographic location, including country, city, region, urban or rural area. Geographic information can enable understanding of local cultural factors, shopping preferences, environmental impacts, and other local factors.
Psychographics:
Segmenting customers based on psychological factors, such as values, ideals, beliefs, career orientation, lifestyle, and more. Information about customer psychology helps gain insight into motivations and factors that influence purchasing decisions.
Behavior: Segment customers based on their consumer behavior, including purchase frequency, purchase quantity, response to marketing campaigns, product types purchased, etc. Consumer behavior information helps understand customer interactions with brands and provides information about preferences, changing needs, and shopping trends.
By combining these criteria, businesses can build different customer segments and develop customized marketing strategies to reach their targets and optimize marketing effectiveness.
The STP model consists of 3 main components: Segmentation, Targeting, and Positioning.
The STP model consists of 3 main components: Segmentation, Targeting, and Positioning.
Targeting (Define target market)
The process of determining the target market (targeting) requires assessing the potential of each customer segment in the previous step, to select the target customer segment. Below are the criteria you need to consider when determining the target market:
Potential Assessment: Assess the potential of each target segment based on factors such as market size, growth rate, profitability, and ability to create value for the business. Review, evaluate, and select segments that have the potential to bring profits to the business.
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Feasibility: Consider the ability to reach and serve the target segments. Assess whether the business has the appropriate approaches and distribution channels to meet the needs of the target segments. Also consider the financial capacity and resources to invest in these target segments.
Competition: Research and evaluate the competitive landscape in target segments. Consider the presence of competitors in selected target segments and the business’s ability to compete in serving and attracting customers from these segments.
Accessibility:
Determine the ability to develop marketing strategies to reach the selected target segment. Ensure that the business has the ability to effectively reach and engage with target customers without being hindered by legal, cultural, technical, etc. barriers.
Positioning
Product positioning and brand positioning are two important aspects to determine the value and position of products and brands in the market. After identifying the target customer segment and exploiting customer insights of that segment, businesses can position their brands and products to suit the target customer segment, to easily attract customers, create competitive advantages for the sales process to take place smoothly.
Product positioning: Product positioning is the process of identifying the unique values of a product to create a communication message, and build the product’s position in the minds of consumers. That value is related to the characteristics, uses, technology, story behind the product… Product positioning includes the following elements:
Identify core values:
Identify the key values and benefits your product brings to customers. This could include unique features, high performance, good quality, solving customer problems, or creating a unique customer experience…
Differentiate from competitors: Consider the strengths and differences of your product compared to competing products in the market. Find out the unique aspects and advantages that your product can provide.
Identify your target audience: Identify the target customer group that your product is aimed at. Understand your customers’ needs, wants, values, and priorities to shape your product accordingly.
Create a positioning message: Develop a unique and compelling positioning message to convey the value and benefits of the product to customers. This message must accurately reflect the spirit and value that the product brings.
Brand Positioning:
Define your brand values: Identify the core values and unique elements of your brand. This may include your vision, mission, core values, and the unique characteristics that your brand offers.
Branding: Creating a unique and recognizable image for your brand. This includes developing a logo, colors, design style, messaging, and other job function email data visual elements to create a consistent and recognizable brand image.
Brand communication: Using communication channels and communication strategies to convey your brand’s message and values to customers. Including advertising, mass media, social media, and other communications activities to build awareness and trust in your brand.
Benefits of STP model in marketing
The STP (Segmentation, Targeting, Positioning) model brings many important benefits to businesses in the marketing and branding process, including:
Better understanding of customers:
Through the process of market segmentation and identifying target customers, businesses can better understand the needs, desires and consumer behavior of customers. This helps to orient marketing strategies and develop products/services suitable for target customers .
Optimize marketing resources and efforts: The STP model helps businesses focus their marketing resources and efforts on the most important customer groups. Instead of approaching the entire market, businesses can focus on the segments with the highest growth and profit potential.
STP model supports businesses in the marketing and branding process
STP model supports businesses in the marketing and branding process
Differentiation and Competitiveness: Through the process of brand positioning, businesses can differentiate and shape their brand image. This helps create a competitive advantage and attract target customers, while building trust and recognition for the brand.
Increase marketing effectiveness: The STP model helps businesses create marketing strategies and messages that are relevant to each customer segment. Reaching target customers in a relevant and optimal way helps increase marketing effectiveness and minimize waste.
Create value and increase profits:
The STP model helps businesses create value for their target customers and increase customer loyalty. By focusing on high-potential customer segments, businesses can increase profits and achieve better business results.
Example of STP model
Marriott International owns a number of different hotel chains that target specific customer groups.
The company divides its hotel chains into five main groups, each targeting a different customer segment:
Luxury – aimed at luxury customers: These establishments offer luxurious and unique experiences, including famous brands such as The Ritz-Carlton, St Regis, JW Marriott and W Hotels.
Premium – aimed at young ba leads couples and corporate clients: Premium brands offer sophisticated, luxurious hotels, including traditional brands such as Marriott Hotels and Sheraton, as well as specialty brands such as Le MERIDIEN and Westin.
Select – targets experienced travelers and offers smart, modern amenities: Select brands include Courtyard Hotels, Four Points, Aloft Hotels and Moxy Hotels.
Longer Stays
Aimed at families with children: These amenities are designed for extended stays that feel like home, and include. Brands like Marriott Executive Apartments, TownePlace Suites. Element, and Homes & Villas by Marriott International.
Collection – aimed at high-end luxury customers seeking special and unique experiences: Collection properties offer unique, luxury experiences, including brands such as Autograph Collection Hotels, Design Hotels and Tribute Portfolio.
It can be seen that Marriott International has created different hotel segments, aiming to meet the needs of different customer segments.
The STP (Segmentation, Targeting, Positioning) model has become an important tool in the field of marketing and branding. By applying the STP model, businesses can optimize their marketing resources and efforts, focus on the most important customer segments, and create differentiation and competitiveness for their brands. By better understanding the needs and desires of customers, businesses can develop appropriate marketing strategies and build a unique and trustworthy position in the minds of customers.
