3-Step STP Marketing: Segmentation, Targeting, and Positioning

The STP marketing model combines market segmentation, targeting, and positioning to identify customers and increase growth potential. STP has a straightforward three-step process to target customers, and marketing teams can combine its analytics and findings with other creative marketing approaches. The STP process analyzes customer data and demographics to find target markets, increasing the likelihood of expanding a customer base and securing brand loyalty.

STP stands for segmentation, targeting, and positioning. Consider how these three elements work together to create an effective marketing strategy:

1. 1. Segmentation: STP begins with demographic segmentation. In this first step, brands identify the basis for segmentation targeting. This may mean looking at age, gender, marital status, or ethnicity or breaking lists down based on geographic segmentation by zip code or street address.
2. 2. Targeting: After making demographic lists, marketers create individual target segments based on the desired criteria. Companies analyze the profitability of different groups and then develop targeted print and digital marketing strategies.
3. 3. Positioning: Different segments necessitate different market positionings. After establishing segments, marketing teams craft positioning strategies for each segment to make the messaging most attractive to the targeted group. Product positioning can vary wildly from demographic to demographic, and market research can help marketing teams learn how to best communicate to each age, ethnicity, or geographic group.

Below are a few examples of the variables that may influence an STP marketing campaign and help define market segmentation:

1. 1. Age: Age is one of the most important customer segments all marketing efforts must consider. Age can dictate what marketing channel is best for reaching customers, what kind of messaging they prefer, and what pricing strategy will be most effective.
2. 2. Psychographic: Psychographics is a form of behavioral segmentation based on the personalities and attitudes of a target audience. This may include their hobbies, risk tendencies, interests, favorite TV shows, and more.
3. 3. Beliefs: Faith, spirituality, and political views are factors to consider when building your STP campaign.
4. 4. Location: One’s zip code can tell you about their income, lifestyle, and shopping preferences. Mailing addresses are key to developing list segments.
5. 5. Gender: Gender and gender relations can further illuminate whether a product is a good match for specific subsets.

Follow these steps to enact an STP marketing plan at your start-up or company:

1. 1. Define your market. Define your target market using market research, surveys, and data from previous campaigns.
2. 2. Create segment lists. Create unique lists so that each segment can receive specific messaging to engage them most effectively.
3. 3. Develop positioning strategies. Based on your segments, develop different messaging for each list. You may even A/B test within the same segment to see which campaign performs better, honing that data for future campaigns.
4. 4. Begin your campaign. Create display ads, social media posts, and email campaigns that pair segment with positioning and deploy your messages or ads.
5. 5. Analyze and refine. See how campaigns perform and which segment engages more. Put additional resources into those segments, and evaluate how the marketing toward others can improve.

STP marketing presents companies with several strategic advantages. Employing an STP marketing campaign can have the following effects:

1. 1. Expand market reach: Market targeting can get granular, and if you can locate the correct markets and specific customer needs, you can unlock greater actionability and sales in niche markets.
2. 2. Increase brand loyalty: STP is not a generic marketing strategy. After creating a unique selling proposition, you can service a specific community’s needs and grow your brand loyalty.
3. 3. Boost return on investment: STP means going after the right audience—you won’t waste money advertising to those less likely to buy your products or services.
4. 4. Find gaps in the market: By identifying key groups, you can also discover their needs and what gaps there are in the marketplace, allowing you to craft a product genuinely wanted.

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