What is targeting and positioning?
In marketing, segmenting, targeting and positioning (STP) is a broad framework that summarizes and simplifies the process of market segmentation. Targeting is the process of identifying the most attractive segments from the segmentation stage, usually the ones most profitable for the business.
The STP process is an important concept in the study and application of marketing. The letters STP stand for segmentation, targeting, and positioning. The STP process demonstrates the links between an overall market and how a company chooses to compete in that market.
- The marketing mix is a crucial tool to help understand what the product or service can offer and how to plan for a successful product offering. The marketing mix is most commonly executed through the 4 P's of marketing: Price, Product, Promotion, and Place.
- The Product Life Cycle. A new product progresses through a sequence of stages from introduction to growth, maturity, and decline. This sequence is known as the product life cycle and is associated with changes in the marketing situation, thus impacting the marketing strategy and the marketing mix.
- A target market is the market a company wants to sell its products and services to, and it includes a targeted set of customers for whom it directs its marketing efforts. Identifying the target market is an essential step in the development of a marketing plan.
STP plays an important for role to get to your right customer. All three (segmentation, targeting and positioning) are tools to align your products with the right customers. a) Segmentation splits buyers into groups with similar needs and wants to best utilize a firm's finite resources through buyer based marketing.
- Customer segmentation is the practice of dividing a customer base into groups of individuals that are similar in specific ways relevant to marketing, such as age, gender, interests and spending habits.
- Divide the market into workable market segments -- age, income, product type, geography, buying patterns, customer needs, or other classifications. Define your terms, and define your market. Segmentation can make a huge difference in understanding your market.
- Mass marketing is a market strategy in which a firm decides to ignore market segment differences and appeal the whole market with one offer or one strategy, which supports the idea of broadcasting a message that will reach the largest number of people possible.
Updated: 2nd October 2019