Marketing Strategy - Stp Strategy

Marketing Strategy-STP strategy

In modern marketing Segmentation, Targeting and Positioning (STP) is a familiar strategic approach and one of the most commonly used marketing strategies. This strategy helps identify your most valuable types of customer, and then develop products and marketing messages that ideally suit them. This creates a good connection within the particular interested group by personalizing your messages which allows more products to be sold. How the steps are used;

1. Segment the market

2. Target the best customers

3. Position the offering

1. Segmentation

The product and the brand cannot always fit every customers needs because of this organizations use market segmentations where they divide the customers into several categories with common needs and characteristics. Market segmentation can be done in many ways such as;

• Geographic – by the country, city, neighborhood, etc.…

• Behavioral – how loyal they are to the product, how they use the product and what benefits or requirements they are looking for.

• Demographic - age, marital status, gender, ethnicity, sexuality, education, or occupation.

Example: Tesla started with Roadster with a base price of US $109000 in 2007, then in 2012 came with Model S priced US $85,000.April 2016 Model 3 was launched with a starting price of US $35,000

2. Targeting

Out of the customer categories the organization now should select a group of customers that bring profits, how these customers help the organization develop and also how loyal the customers are. This process needs a lot of effort since this determines the progress of the organization.