Want to come up with a marketing strategy to win and retain most customers?
If so, here’s what you should keep in mind. The marketing world changes fast, really fast!
One day, your simple intuition-based marketing strategy is attracting new clients left, right, and center. The next day, boom! You’re flat on your back with a dwindling client-base and sinking sales.
If you need a strategy that can stand the test of time, you have to use flexible and effective marketing models.
There are many useful marketing models out there, including USP, marketing mix model, and customer lifetime value.
In this piece, however, we’ll look at everything you need to know about STP marketing, which is one of the most effective marketing strategies
STP is an acronym that stands for segmentation, targeting, and positioning.
STP strategy is a marketing model that enables marketers to prioritize propositions and deliver relevant and individualized messages to their audiences.
In other words, STP in marketing enables organizations to focus on delivering relevant products, services, and communications to their clients.
Steps Involved in the STP Process
Step 1: Segmentation
This step essentially requires brainstorming. It involves dividing the market, usually consisting of the existing and potential clients, into smaller groups of consumers with distinct needs, characteristics, or behaviors.
These groups are known as segments. Segmentation can be based on the:
- Demographic attributes such as gender, age, marital status, ethnicity, education, or occupation.
- Geographical location such as neighborhood, city, state, or country.
- Psychographic attributes such as lifestyle, values, personality, or risk aversion.
- Behavioral traits such as how loyal persons are, benefits they’re looking for, or how they use the product.
How many segments should you have?
If you’re running a niche company, you’ll probably have one segment. However, if you sell different types of products, you may have ten segments or even more.
Step 2: Targeting
Once you’ve subdivided the broad market into different segments, analyze them to find out which one would be beneficial to your company in the long run. Ask the following questions:
- a) Is the segment large enough to be worth your effort?
- b) How does the segment compare with the other segments?
- c) Is steady growth possible?
Also, check if the segment is accessible. Your team should be able to reach the segment and pass your promotion messages easily.
Make sure you conduct a PEST analysis to identify the opportunities and challenges that affect each segment.
It’s essential to note that it takes a lot of effort and resources to analyze a group of consumers effectively. For this reason, ensure you focus on one segment at any one time.
Now that you’ve identified the segments that will generate more revenues for your company, it’s time to come up with customized marketing campaigns that appeal to each.
Step 3: Positioning
Positioning is all about creating a brand image in the mind of the consumer.
The goal of this step is to position your products as more valuable and innovative than your competitors’ products. How do you do this?
Take your time to study your products and identify all the reasons why customers should purchase your product. Once you define your unique selling proposition, look at the specific needs of each segment.
This process will help you develop a unique marketing strategy that clearly explains how your products will meet the needs of your clients better than any of your rivals’ products.
Also, don’t forget to conduct thorough research to find out how the segments you’ve selected perceive your brand, products, or services. The study will help you determine the best way to present your products or services.
Benefits of STP Marketing
Aside from helping you establish a future-ready business strategy, there are more reasons why you should embrace STP in marketing. Here are some of them:
1. Effective Planning and Documenting of Strategies and Processes
Most marketers don’t plan or document their strategies. STP makes the process easy.
Did you know marketers who document their marketing strategies are 538% more likely to report success than those who don’t? Marketing professionals who document their advertising processes are also 466% more likely to report success than those who don’t.
Segmentation, targeting, and positioning will help you to plan and document your marketing campaigns. The process will also make your strategy more precise and effective.
2. STP Helps You Adopt a Scalable Marketing Approach
In a dynamic marketplace, having a scalable marketing plan is not only rewarding but also necessary.
The STP model will help you establish a marketing strategy that you can scale up to attract more clients and transform them into loyal customers.
3. Competitive Advantage
Marketing approaches that are too common, measurable, testable, and repeatable can be annoying. Your competitors can also apply them. STP strategies are unpredictable and will give you a competitive advantage.
Your clients like consistency, but they also want you to use marketing tactics that are not too common.
The STP process will make your marketing strategy multi-faceted and enable you to introduce variable elements into your strategy every time.
4. Understanding Your Target Market Better
The STP model enables you to not only sell your products and services to the right customers but also to understand more about them. This helps you modify future campaigns.
When you understand your target audience, it becomes easy to capture their attention and build loyalty. You’re also able to address their needs and goals front and center.
Knowing your target market will also help you manage customers’ expectations effectively through the marketing campaigns. It’ll also help you personalize your products and services and improve your customer retention rate.
Adopt the STP Strategy
Coming up with a marketing strategy that resonates with audiences can be complicated and confusing. The good news is that it can be done. All you need is to apply the STP marketing model.
The STP strategy will help you identify your target clients, analyze them, and present your products or services to them in the most appealing manner.
You can check out our blog to discover other marketing strategies and helpful tips for small businesses.