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Today, Segmentation, Targeting and Positioning (STP) is a familiar strategic approach in Modern Marketing. The STP model is useful when creating marketing communications plans since it helps marketers to prioritise propositions and then develop and deliver personalised and relevant messages to engage with different audiences.
STP is relevant to digital marketing too, where applying marketing personas can help develop more relevant digital communications as shown by these alternative tactical customer segmentation approaches.
In addition, STP focuses on commercial effectiveness, selecting the most valuable segments for a business and then developing a marketing mix and product positioning strategy for each segment. Through segmentation,you can identify niches with specific needs, mature markets to find new customers, deliver more focused and effective marketing messages.
The needs of each segment are the same, so marketing messages should be designed for each segment to emphasise relevant benefits and features required rather than one size fits all for all customer types. This refers to 'personality and emotions' based on behaviour, linked to purchase choices, including attitudes, lifestyle, hobbies, risk aversion, personality and leadership traits.
This refers to Hobbies, recreational pursuits, entertainment, vacations, and other non-work time pursuits. The Islamic Bank of Britain offers Sharia compliant banking which meets specific religious requirements. Drill down byA Country, region, area, metropolitan or rural location, population density or even climate. An example is Neiman Marcus, the upmarket department store chain in the USA now delivers to the UK.
Refers to the nature of the purchase, brand loyalty, usage level, benefits sought, distribution channels used, reaction to marketing factors. In a B2B environment, the benefits sought are often about a€?how soon can it be delivered?a€™ which includes the a€?last minutea€™ segment - A the planning in advance segment. SmythsonA Stationary offer similar products to other stationery companies, but their clients want the benefit of their signature packaging: tissue-lined Nile Blue boxes and tied with navy ribbon! The list below refers to whata€™s needed to evaluate the potential and commercial attractiveness of each segment.
Money: Anticipated profits must exceed the costs of additional marketing plans and other changes.
Any time you suspect there are significant, measurable differences in your market, you should consider STP. In our free, illustrated guide to 15 classic planning models diagrams we explain what they are and give examples of why and how to apply them in business. The third and final part of the SEGMENT – TARGET – POSITION (STP) process is ‘positioning.’ Positioning is undoubtedly one of the simplest and most useful tools to marketers.

The term ‘positioning’ refers to the consumer’s perception of a product or service in relation to its competitors. Marketing Teacher designs and delivers online marketing courses, training and resources for marketing learners, teachers and professionals. All marketing mix elements, particularly the product mix, need to be consistently focused at the end positioning goal. If the desired positioning has been effectively and clearly chosen, then deciding on the marketing mix elements should be relatively straight forward (although implementation is always a challenge). Remember that a product’s positioning is the consumers’ understanding of the product and its specific benefits.
The firm’s communications mix has a big role to play as it usually focuses on particular benefits and advantages of the product. Positioning is viewed on a relative basis, therefore the competitors’ IMC mix (product claims) will also affect the positioning of all products. The actual design and features of the product, particularly when consumers use the product, has a major impact on the perception of the product and its relative advantages. One of the first experiences the consumer has the product is the look and feel of the packaging.
Word-of-mouth communication between consumers has a high level of credibility and cut through and will greatly influence positioning.
The type of retailers where the product is sold gives an indication of the product’s quality and status.
The overall price points of the product act as a cue for quality, and a high frequency of sales promotions may suggest lower quality.
As shown, the product quality is poor as the firm has used low quality materials and they have not invested in a suitable design. Alternatively, they could change their communications mix and position the shoe as a budget running shoe. This example is created using ConceptDraw PRO diagramming and vector drawing software enhanced with solution Marketing from ConceptDraw Solution Park. This template is created using ConceptDraw PRO diagramming and vector drawing software enhanced with solution Marketing from ConceptDraw Solution Park. This sample is created using ConceptDraw PRO diagramming software enhanced with solution Marketing from ConceptDraw Solution Park. This template is created using ConceptDraw PRO diagramming software enhanced with solution Marketing from ConceptDraw Solution Park.
Usage of them is covered by Creative Commons “Attribution Non-Commercial No Derivatives” License. This is an audience rather than product focused approach to communications which helps deliver more relevant messages to commercially appealing audiences.

This approach is more efficient, delivering the right mix to the same group of people, rather than a scattergun approach. Though, Moshi Monsters however is targeted to parents with fun, safe and educational space for younger audience.
After segmenting a market and then targeting a consumer, you would proceed to position a product within that market. You need to ask yourself, what is the position of the product in the mind of the consumer? They could be price (variable one) and quality (variable two), or Comfort (variable one) and price (variable two). Consumer typically form their understanding of the product over a period of time using information from a variety of sources, some of which are shown in the following diagram and then quickly discussed in the subsequent table. In this case, using a running sports shoe, the goal is to position the product as a shoe ‘for serious runners’. They have used discount stores as their prime distribution channel and they have priced shoes at a discount level as well.
If the firm does want to position the shoe for serious runners, then they need to invest in product improvement with higher quality materials, they would need to access sporting and specialty shoe stores, and the product is to be priced higher. Either approach would align the positioning with the marketing mix elements and will generate better sales and enhanced profitability. ConceptDraw PRO provides export of vector graphic multipage documents into multiple file formats: vector graphics (SVG, EMF, EPS), bitmap graphics (PNG, JPEG, GIF, BMP, TIFF), web documents (HTML, PDF), PowerPoint presentations (PPT), Adobe Flash (SWF). The individual products are then mapped out next to each other Any gaps could be regarded as possible areas for new products. The firm has invested in an advertising campaign in specialist running magazines and websites.
These marketing mix elements clearly communicate to the end consumer that this is a low quality, budget shoe, and not a serious running shoe as the advertising tries to indicate. This popularity is relatively recent since previously, marketing approaches were based more around products rather than customers.A In the 1950s, for example, the main marketing strategy was 'product differentiation'. Product differentiation and market segmentation as alternative marketing strategies.A Journal of Marketing.
While that part of their program is good, unfortunately the balance of their marketing mix offering is not aligned to that positioning.
Marketers decide upon a competitive position which enables them to distinguish their own products from the offerings of their competition (hence the term positioning strategy).

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