The Process of Segmenting, Targeting, and Positioning (STP)

Segmenting, Targeting, and Positioning (STP)
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Segmenting, Targeting, and Positioning (STP)
Segmenting, targeting, and positioning (STP) is a marketing technique that allows businesses to divide their markets into segments and develop specific products for the segments, ensuring that they focus on the most profitable ones. The strategy is mainly focused on the customer’s needs and wants. The segmenting process involves distinguishing portions of the market and the cycle of segregating an expansive client base into sub-segments of customers comprising of existing and future clients. This is done using five distinct categories: demographic, geographic, psychographic, behavioral, and product-related factors (Lupao, 2017). The requirements of effective segmentation are measurability, substantiality, accessibility, and actionability.
Targeting the segments involves identifying the ones that are commercially attractive and favorable for the business. The criteria used involve the size, profitability, and efficacy of each segment. Notably, the final process of positioning involves converging all targeted segments and focusing on customer views in comparison to competitors. This is critical in ...