How can you segment customers using STP?

Segmentation is the process of dividing a larger market or audience into smaller, distinct groups based on shared characteristics, preferences, or behaviors. This enables targeted marketing strategies, tailoring products or services to specific segments, ultimately enhancing customer satisfaction and maximizing business effectiveness.

Simply Put: Segmentation: Divide the market into groups with similar traits (e.g., age, location, interests). Criteria: Use demographics, psychographics, geographics, behavior, or benefits for segmentation. Goal: Identify profitable segments, and understand their needs and motivations for targeted strategies.

Think of segmentation as the map of your market. It's not about your customers. It's the overall view of all the potential customers of the market. A segment is described in terms of: - volume (what % of the market does it represent in volume) - value (what % of the total market value does it generate) - a clear description of demographics, attitude and motivations of the segment with regards to the market - and a labeling of this segment which captures its specificities (e.g: 'The premium quality seekers', 'The hesitant buyers', etc.) Once you have you have rigorously built this map, it's like magic: it will become obvious which segments are the right ones to go after for your business.

The key is to find the most relevant and meaningful segments that you can serve better than your competitors, and position your product accordingly. You can use various criteria to define it: - Demographics: age, gender, income, education, occupation, location, family size, etc. - Psychographics: personality, lifestyle, values, attitudes, interests, opinions, etc. - Behavior: usage rate, purchase frequency, loyalty, benefits sought, occasion, etc. - Needs: problems, pain points, goals, desires, motivations, etc. For example, you can do it based on the benefits that your customers seek (quality, price) and how your product can solve them (saving time, reducing costs, increasing productivity, etc.)

Segmentation is personalization. Otherwise, all your content and messages won't hit a nail (as often) if they sound general. The power of specificity and sending the right message to the right person is underrated. The easiest way to use segmentation is to do it two-fold: - for prospects: like a funnel (interested/desire/consideration) - for clients: life a flywheel (customer, review, referral) I hope you find this useful.

Targeting is one of the most important factors. Understanding Targeting: It's about identifying and choosing the most promising market segments. Evaluating Segments: Analyze each segment's size, growth, and profitability. Consider competition and how well the segment aligns with your business. Selecting Segments: Focus on those that offer the best potential and fit for your products or services. Resource Allocation: Strategically allocate marketing resources to the chosen segments for optimal results.

- Identify your target audience by creating the persona/s so you get a better idea whom your brand will speak to - Identify the influencers to target, for eg. Travel companies may target kids and women as they influence selection of vacation spots. - Be clear on your objectives for them - Craft your communication according to the target segments - decide on the language and message keeping your objective in mind - Identify the platforms where you can reach out to your target audience

-Identify distinct customer groups based on similar characteristics like demographics (age, gender), psychographics (lifestyle, interests), behavior (purchasing habits), or geographic location. - Evaluate and select specific segments that align with your business goals and capabilities. - Position your products or services in a way that highlights their value and meets the specific needs and preferences of each customer group.

Targeting is when you focus your efforts on a specific segment that offers the most value to your campaign. Being specific in your targeting is crucial for success. To better understand your target audience, start by creating buyer personas. These personas will help you understand what your target audience responds to best, their interests, and how they make purchasing decisions. Here's a basic example: Women's gym apparel. They may want to target women in their late teens to early 20's, as this demographic is where they have they see the most buyer intent. Understanding this, they may utilise affiliate marketing to connect with their target audience on platforms they use most, such as Instagram or YouTube.

In one project, we had to choose which market segments to target for a new product launch. We evaluated segments based on size, growth potential, and compatibility with our product's unique features. Our analysis led us to focus on a smaller but rapidly growing segment that our competitors had overlooked. This targeted approach allowed us to efficiently allocate resources and achieve a higher market penetration rate than anticipated. It highlighted the importance of selecting segments not just based on size but on strategic fit and potential for sustainable growth.

Positioning is how you place yourself in the market. It's the message that you want to convey to your target audience. In simplest terms what does the brand say about itself? Are you the sustainable option or are you the rare luxury option? For example our company Add People are leading experts in marketing for the SME market. When people think Add People they think marketing for small businesses. Establishing a market position is what differentiates you from your competitors. We are not the only company in the world that offers marketing solutions however we position ourselves as the company that specialises in helping small businesses grow.

Positioning is what allows you to be recognized for a service/product provider filling a demand on the market. The main lesson here is, to focus on finding and claiming your place in the market where there is already demand (instead of creating demand).

Positioning, the final step in the STP (Segmentation, Targeting, Positioning) process, involves defining how you want your target audience to perceive your product or service relative to competitors. It’s about crafting a unique image and identity in the minds of your target market. Effective positioning highlights the distinctive benefits and features that set your offering apart. It aligns your marketing strategies and communication efforts to reinforce this desired perception, ensuring that your product stands out favorably in a crowded marketplace. Positioning helps tailor your messaging to resonate deeply with the specific needs and desires of your chosen segments, maximizing relevance and impact. #MarketingStrategy #BrandPositioning

Effective positioning involves understanding your target segments' perceptions and ensuring your brand message clearly differentiates you from competitors. Regularly gathering feedback from your audience can help refine your positioning to stay relevant.

To an extent, positioning is the activities involved in bringing the best possible customer perceived value for the offering. Positioning has to play a lot with customers' minds and a brand should have a strategic approach in doing so as it involves the process of tangibilizing the intangibles.

STP helps businesses understand whom to serve profitably and use the framework to create products or services tailored to their needs. Your offering is much rooted in an STP you build and this triggers the rest of your marketing activities ranging from the product to productivity.

STP (segmentation, targeting, positioning) is foundational for your marketing strategy. What happens when you have this done? Make more content, marketing marketing campaigns, and customer messages that are more in sync with a throughline that connects everything together. Every message needs to sound like coming from a single place (brand) and also feel personal to me.

Using STP involves segmenting, targeting, and positioning customers. Firstly, segmentation divides the market based on similarities. Targeting selects suitable segments aligned with business goals. Lastly, positioning tailors offerings and messaging to meet segment-specific needs, enhancing satisfaction, fostering loyalty, and differentiating the brand from competitors. STP enables efficient resource allocation, personalization, and creation of a unique brand identity for targeted segments, maximizing market potential. It's a strategic symphony shaping personalized experiences and carving brand niches within diverse markets.

I recall a specific instance where implementing STP significantly enhanced our marketing approach. By segmenting the market, we were able to identify and focus on the most profitable and relevant segments, avoiding the inefficiency of targeting broad, non-responsive audiences. This precise targeting allowed us to tailor our products and marketing messages to meet the specific needs of these segments, resulting in increased customer satisfaction and loyalty. Moreover, through effective positioning, we differentiated our products in the market, establishing a unique brand identity.

STP helps refine focus, so resources align with customer needs, maximizing impact and efficiency. It enhances brand recognition and competitive advantage, building lasting customer relationships.

There's no one-size-fits-all approach, but here are some steps: Define your marketing goals: What do you want to achieve? Gather customer data: Analyze demographics, behaviors, and preferences. Identify segmentation criteria: Choose relevant characteristics to group your customers. Develop segment profiles: Understand each segment's needs, values, and pain points. Choose your target segments: Prioritize based on potential and alignment with your goals. Craft unique positioning for each segment: Tailor your message and value proposition. Monitor and refine: Analyze results, adjust your approach as needed.

While there is no fixed formula for this, there are still lot of guidelines that you can use to get this right. 1.) If you already have a CRM then use the data from your CRM to help with segmentation. 2.) If you don't have any starting data, then do both quantitative and qualitative analysis to decide on your segmentation criteria. 3.) Create a specific profile (pain points, their wants, their needs, likes and dislikes) for each segment and understand it well. 4.) Use the segment profiles to identify the segments you want to target. 5.) Once you identify the segments create the right messaging to ensure resonance with the segments chosen. 6.) Track metrics and optimize to get best results.

The STP framework can be instrumental in ensuring that marketing strategies are more focused, relevant, and personalized for customers. Within this framework, the MAADS model is very effective for segmentation. Per this, market segments must be: 1. Measurable: Size/ purchasing power profiles of the segments must be quantifiable. 2. Accessible: It should be easy/ affordable to reach and serve the segments. 3. Actionable: Viable plans can be designed for attracting and serving the segments. 4. Differentiable: The segments should be mutually exclusive and respond differently to different marketing programs. 5. Substantial: The segments should be large enough to be profitably served. (Ref: Principles of Marketing, 12th ed., Kotler & Armstrong)

Applying the STP (Segmentation, Targeting, Positioning) model involves three key steps: Segmentation: Divide the market into distinct groups with common needs, behaviors, or characteristics. Use criteria like demographics, psychographics, geographic, and behavioral data. Targeting: Assess each segment's attractiveness and select the segment(s) that your business can serve best and profit from. Consider factors like segment size, growth potential, competition, and alignment with your brand's strengths. Positioning: Develop a unique selling proposition (USP) that differentiates your product in the minds of the targeted segment.

Go Beyond Traditional Segmentation: Explore innovative segmentation methods like social listening and website behavior analysis to uncover hidden audience affinities and tailor messaging accordingly. Agile Targeting and Re-evaluation: Don't treat targeting as a one-time step. Continuously monitor segment behavior and adapt your targeting strategy based on real-time performance data. Co-creation with Customers: Involve high-potential customer segments in the positioning process. Gather feedback and insights to shape your messaging and product offerings around their evolving needs.

India's emerging fashion retailer, Zudio can be an example of the same. Zudio does the segmentation based on age and income, perhaps more micro-segmenting. Targeting is done on people living in Tier 2 cities and Positioning comes in the way of the product value fit.

Most companies don't have a single audience, even if it may seem that way at first glance. By segmenting your customers into highly targeted groups, you'll be able to create more personalized content, which can mean the difference between them choosing you or your competitor. SHRM, for example, is not just for HR professionals. By segmenting our audiences via roles, industries, even their goals, we are able to create the most informative information for that exact person — leading to more engagement across all of our offerings.

In my role leading content marketing at Uber Eats MEA, We leveraged the STP model effectively Segmentation: We targeted busy professionals with quick, nutritious meals, deal hunters seeking value, and late-night cravers desiring indulgent options. Targeting: Content was customized for each segment: efficient meals for professionals, value deals for bargain hunters, and varied late-night treats for cravers. Positioning: We positioned Uber Eats as not just a delivery service but a lifestyle enabler. Our content strategy emphasized convenience, speed, and culinary diversity. This approach helped us craft engaging content, significantly enhancing customer satisfaction in our diverse MEA markets.

The focus would be on telling a true and compelling story about how the company's unique capabilities meet the specific needs of their chosen segment, building a narrative that resonates with the target customers' values and needs. This story-based approach, rooted in authenticity, helps in creating a strong and memorable brand identity.

étude de marché : Collectez des données sur votre marché, vos clients, et vos concurrents. Segmentation : Utilisez des critères qualitatifs et quantitatifs pour diviser le marché. Ciblage : évaluez les segments et sélectionnez ceux qui sont les plus alignés avec vos objectifs. Positionnement : Développez des messages et propositions de valeur spécifiques pour chaque segment.

Segmentation, Targeting, and Positioning (STP) is a powerful approach in marketing. For customer segmentation, divide your market based on distinct criteria like demographics, psychographics, behavior, or geography. This helps in identifying groups with similar needs or characteristics. Post-segmentation, target the most viable segments, focusing on those where your product or service meets their needs effectively and where there's potential for growth. Finally, position your brand uniquely within these segments, tailoring your messaging to resonate with their specific desires and pain points. This STP approach ensures tailored and impactful marketing efforts.

Aplicar la estrategia STP(Segmentación,Orientación yPosicionamiento)para la segmentación de clientes, es esencial considerar datos demográficos y psicográficos detallados. La segmentación debeser dinámica, adaptándose a cambios en comportamientos y preferencias. La inclusión de canales omnicanal y la personalización contextual mejoran la relevancia de las comunicaciones. La retroalimentación activa del cliente, a través de encuestas y redes sociales, proporciona información valiosa. La ética en la segmentación, evitando la discriminación y siendo socialmente responsable, es crucial. En resumen, la segmentación efectiva implica una comprensión profunda, adaptación constante y compromiso ético para construir relaciones sólidas y sostenibles.

Ajuste a sua estratégia de STP à realidade da sua empresa e do seu mercado. Dimensione o tamanho do seu esfor?o aos recursos disponíveis, grau de informa??o existente, capacidade da organiza??o, grau de desenvolvimento do seu mercado e o nível de competitividade dos seus concorrentes. Estratégias de marketing tem que ser realistas e estarem alinhadas à capacidade de entrega da organiza??o. Mais vale um plano simples e executável, do que um plano compleo que n?o seja possível de concluir. Comece sempre mapeando a sua realidade, o seu mercado, seus clientes e seus concorrentes, para ent?o tra?ar metas e objetivos de STP concretos.

Here is what else to consider: Strengthening client loyalty through personalized services and responsive support through CRM. Also, continual investment in R&D for offering advanced products, thereby positioning as an industry leader. Also focus on quality, ethical practices, and sustainability to build trust and utilizing LinkedIn for networking, SEO for online visibility. Such elements should be integrated authentically into the marketing strategy, aligning with the company's core values and mission.

In today's socially conscious landscape, ethical considerations matter too when applying STP. It's not just about profitability; businesses must align segmentation, targeting, and positioning with ethical values. This builds trust and credibility, fostering stronger relationships with customers while positively impacting society.