Surely, you have heard the term STP when looking through any book or website that teaches Marketing. Do you know how brands “operate” under this common formula to make a difference and capture the hearts of customers about the product? Any! Let us “reveal” to tell you more about the STP model in Marketing in the article below!
What is the STP model?
The STP model in Marketing stands for:
– Step 1: Segment – Segment your market.
– Step 2: Target – Choose your best customers.
– Step 3: Position – Position the product in the market
The STP in Marketing model is useful because it helps you identify the types of customers that are most valuable to your business, and then develop products and marketing messages that are ideally suited to those customers. This allows you to better engage with each customer group, personalize your message, and sell more products, thereby delivering the right STP strategies for your business.
Analysis of STP model in marketing
SEGMENTATION: MARKET SEGMENTS
What is SEGMENTATION?
Market segmentation is an important and necessary process in the business process of enterprises, especially in Marketing. At that time, groups of buyers in a market are classified and divided into subgroups based on characteristics such as income, age, personality, behavior, interests, etc. The purpose of segmentation is specific characteristics and trends of the market in order to achieve the best business performance, and at the same time help enterprises gain competitive advantages.
Marketers often rely on the following typical characteristics of a market to effectively review and segment:
Measurability: The business must be able to measure and determine the segment size, purchasing power, profitability, and value needs of the segment.
Accessibility: Businesses must have a certain level of interaction with customers in the segment.
Sustainability: Enterprises identify segments that are profitable enough compared to other segments in the market and ensure to maintain the value they bring.
Actionability: Enterprises must create a competitive advantage and be able to serve customers in the segment.
Market segmentation research is not only the key in the first step to help businesses “imprint” their position in the hearts of customers, but also to identify target and long-term customers/consumers for the brand.
TARGETING: DETERMINATION OF TARGET MARKET
What is TARGETING?
After the business has performed market segmentation and found different customer groups based on factors such as age, interests, gender, consumption habits, etc., the next process is Target market selection. This is a step to help businesses identify and select potential markets, in line with their product values. From there, the Marketing department will come up with advertising strategies, integrated communication and plans to attract customers in the segment that the business wants to “target”.
To conquer target customers in different segments, businesses need to have diverse, not fixed methods that continuously innovate over time to suit the receiving needs of customers. One of the effective methods is online advertising aimed at consumer behavior. Businesses have been actively collecting data to deliver messages that drive social media users to be customers in potential segments to buy products. This shows that most businesses are gradually focusing on and optimizing online advertising.
Undifferentiated marketing: is an overall, overarching marketing campaign aimed at all customers in all market segments. The advantage of this strategy is that it saves costs and is the best option to focus on large markets.
Differentiated marketing: businesses offer many promotional activities in different market segments in many forms to bring unique benefits to each segment. The advantage of this strategy is mostly to achieve high sales. Besides, the main disadvantage is the increase in related costs.
Niche marketing: A niche market is a market that is divided into many small parts from a large market to find groups of people with special needs but is ignored by most brands. The development of the 4.0 era, social networks and media have created favorable conditions for niche marketing to develop strongly and effectively.
Besides, choosing the right marketing strategy for each customer segment depends on the products and services that the business provides.
POSITIONING: BRAND POSITIONING
What is POSITIONING?
This is the final stage in the S-T-P “power trio” of a strange but strange business