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STP Analysis
What do you mean by STP Analysis -?

STP stands for segmentation, targeting and positioning and it is basically a three-tier model
that keeps a check on your products and services offered as well as your communicative skills
and approach in explaining benefits of it to the segmented audience.

Steps involved in STP Analysis -

During this first step, marketers choose the segments to be used for targeting; positioning
enables them to formulate an idea on how they require a product to be perceived.
The three-stage process of STP is followed by a conclusion involving marketing mix
implementation. The STP process is largely an analytical technique that assists a firm in
addressing and defining its markets so it can meet its strategic goals or refine its marketing
mix. As an example, in keeping with content marketing agency Brafton, website content
marketers may use case studies, webinars and white papers as an element of their marketing
mix to boost their authority. When targeting a market, the second stage of the STP process,
marketers build segment profiles for the segments into consideration. Each profile features a
segment description and various profit measures to help in targeting. Positioning, is the third
stage of the STP process which entails highlighting the competitive advantages and benefits
of a product. Ideally, a firm position or presents a product that clearly meets its target
audience's needs.

Navdeep Yadav
Complete MBA course: Marketing and business Strategy
Relevance of STP in the dynamic B-world -

Today, the STP marketing model (Segmentation, Targeting, Positioning) may be a familiar
strategic approach in modern marketing. it's one in all the foremost commonly applied
marketing models in practice, with marketing leaders crediting it for efficient, streamlined
communications practice. STP marketing focuses on commercial effectiveness, selecting the
foremost valuable segments for a business and developing a marketing mix and products
positioning strategy for every segment. As Martech continues to develop, so do opportunities
for segmentation, targeting, and positioning. So, whether you're fresh to STP or a seasoned
veteran, it will be useful to require stock and double-check you're utilizing every chance you
get to achieve, interact with, convert and interact with customers. The STP model is beneficial
when creating marketing communications plans since it helps marketers to prioritize
propositions then develop and deliver personalized and relevant messages to interact with
different audiences. The three-step funnel consists of market segmentation, market
targeting, and product positioning. Within your research-based market segmentation phase,
you're reaching to identify a basis for the segmentation of your target customers, and
determine important characteristics to differentiate each market segment. When creating
your targeting and positioning strategy, you need to evaluate the potential and commercial
attractiveness of every segment, then develop detailed product positioning for every selected
segment, including a tailored marketing mix supporting your knowledge of that segment. The
recognition of this market-focused model may be a departure from previous marketing
approaches that were based more around products instead of customers. Within the 1950s,
as an example, the best marketing strategy was 'product differentiation'. Moreover,
segmentation, targeting, and positioning is an audience-focused instead of product-focused
approach to marketing communications which helps deliver more relevant messages to
commercially appealing audiences. When we apply Segmentation, Targeting and Positioning
to digital communications STP marketing has full relevancy to digital marketing too at a more
tactical communication level. For instance, applying marketing personas can help develop
more relevant digital communications as shown by these alternative tactical email customer
segmentation approaches.

Navdeep Yadav
Complete MBA course: Marketing and business Strategy
How to use STP marketing?

Through segmentation, you'll identify niches with specific

needs, mature markets to search out new customers, and
deliver more focused and effective marketing messages. The
needs of every segment are the same, so marketing messages
should be designed for every segment to stress relevant benefits
and features required instead of one size fits all for all customer
types. This approach is more efficient, delivering the proper mix
to the identical group of individuals, instead of a scattergun
approach. Well-known ways to segment your audience include:

1. Demographics -
Breakdown by any combination: age, gender, income, education, ethnicity, legal status,
education, household (or business), size, length of residence, sort of residence, or maybe
profession/occupation. An example is Firefox who sells 'coolest things', aimed toward a
younger male audience. Moshi Monsters, however, is targeted to folks with fun, safe and
academic space for younger audiences.

2. Psychographics -
This refers to 'personality and emotions' supported behaviour, linked to buy choices,
including attitudes, lifestyle, hobbies, risk aversion, personality, and leadership traits.
magazines read and television. The demographics explain 'who' your buyer is and
psychographics inform you 'why' your customer buys. There are some alternative ways you'll
be able to gather data to assist form psychographic profiles for your typical customers.
a. Interviews:
talk over with some people who are broadly representative of your target market. In-depth
interviews allow you to gather useful qualitative data to essentially understand what makes
your customers tick. The matter is that they are often expensive and difficult to conduct, and
also the small sample size means they'll not always be representative of the people you're
trying to focus on.
b. Surveys: Surveys allow you to reach more people than interviews, but it may be harder to
urge as insightful answers

Navdeep Yadav
Complete MBA course: Marketing and business Strategy
c. Customer data: you'll need data on what your customers tend to shop for from you, like
data coming from loyalty cards if an FMCG brand or from online purchase history if you're an
e-commerce business. you will be able to use this data to induce insights into what reasonable
products your customers have an interest in and what's likely to make them purchase. as an
example, does discounting vastly increase their propensity to purchase? within which case
they might be quite spontaneous.

3. Lifestyle - It refers to hobbies, recreational pursuits, entertainment, vacations, and other

non-work time activities which develop in a person in the course of time. Companies like on
and off-line magazine will target those with specific hobbies i.e., FourFourTwo for football
fans. Some hobbies are large and well established, and thus relatively easy to target, similar
to the football fan example. An honest example is the explosion in 'preparing' related
businesses, which has gone from barely heard of fringe activity to a billion-dollar industry in
recent years. Apparently now 3.7 million American's consider themselves as preppers or
survivalists. An excellent way to start researching and targeting these reasonable niches is
Reddit, where people create subReddits to share information about some given interest or
hobby.
4. Belief and values - Refers to spiritual, political, nationalistic, and cultural beliefs and values.
The Islamic Bank of England offers Sharia-compliant banking which meets specific religious
requirements. A weird but interesting example of spiritual demographics influencing
marketing that you simply just just won't have guessed is that Mormons are really into 'multi-
level marketing'. They're way more likely to be engaged within the practice than the other US
group. Going the additional mile with demographic research may find yourself discovering
new marketing opportunities and thinking outside the box.
5. Life stages - Life stages are the Chronological benchmarking of people’s lives at different
stages. An example is Saga holidays which are only available for people aged 50+. They claim
an outsized enough segment to specialize in this life stage
6. Geography - Drill down by Country, region, area, metropolitan or rural location, population
density or perhaps climate. An example is Neiman Marcus, the upmarket establishment chain
within the USA now delivers to the United Kingdom.
7. Behaviour - Refers to the character of the acquisition, brand loyalty, usage level, benefits
sought, distribution channels used, reaction to marketing factors. In a very B2B environment,
the advantages sought are often about ‘how soon can or not it's delivered?’ which has the
‘last-minute’ segment - the design ahead segment. A terrific example is Parcelmonkey.co.uk
who offers same-day, next day and international parcel deliveries.
8. Benefit - Benefit is the employment and satisfaction gained by the patron. Smythson
Stationery offers similar products to other stationery companies, but their clients want the
good thing about their signature packaging: tissue-lined Nile Blue boxes and tied with navy
ribbon.
Navdeep Yadav
Complete MBA course: Marketing and business Strategy
Market targeting -

The list below refers to what’s needed to determine the

potential and commercial attractiveness of every segment.
• Criteria size: The market should be large enough to justify
segmentation of products. If the market is tiny, it should make it
smaller.
• Difference: Measurable differences must exist between
segments. • Money: The profits anticipated must exceed the
prices of additional marketing plans and other changes applied.
• Accessible: Each segment must be accessible to your team and
thus the segment must be able to receive your marketing
messages
• Specialize in different benefits: Different segments must need
different benefits.

Product positioning
The positioning maps are the last element of the STP process.
For this to figure, you want two variables as an instance of the
market overview. For example, I’ve taken some cars available
within the uk. This isn’t an exhaustive product position map,
more of an illustration. If there aren't any cars in one segment it
could indicate a market opportunity. Product positioning
consistent with the various needs of shoppers is one and
therefore the most significant things business geeks should
understand.

Navdeep Yadav
Complete MBA course: Marketing and business Strategy
 Conclusion -
STP Marketing is a very powerful tool. However, identifying segmentation and targeting
opportunities, not to mention finding the right positioning angle, are totally complex
processes that require the collection of large amounts of data and insights, as well as an
expert understanding of how markets function and business models. In this article we have
tried our level best to explain the models of STP Analysis with the help of various descriptions.
I hope you had an enriching read throughout.

I hope you had an enriching read throughout. If you wanted to learn about Marketing,
business strategies or some case study Full MBA course would be great choice for all of you.

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Navdeep Yadav
Complete MBA course: Marketing and business Strategy