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How can you integrate the STP model (segmentation, targeting, positioning) into your marketing strategy?

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The STP model (segmentation, targeting, positioning) is a widely used framework for developing effective marketing strategies. It helps you identify and prioritize the most relevant and profitable segments of your market, tailor your products and messages to their needs and preferences, and differentiate yourself from your competitors. In this article, you will learn how to apply the STP model to your marketing strategy in six steps.

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Janelle Amos

Revenue Campaign Architect | Increase revenue, efficiency, and strategic impact | Who I serve: B2B SaaS companies…

1 Step 1: Segment your market

The first step of the STP model is to divide your market into smaller groups of customers who share similar characteristics, needs, or behaviors. These groups are called segments, and they can be based on various criteria, such as demographics, psychographics, geographics, or behavioral. The goal of segmentation is to identify the most attractive and profitable segments for your business, and to understand their needs and motivations.

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Janelle Amos

Revenue Campaign Architect | Increase revenue, efficiency, and strategic impact | Who I serve: B2B SaaS companies Series A-C with 50-250 employees
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The important part of segmenting comes to looking at your sweet spots and data. I've seen companies identify targets based on simply who'd they'd "like" to land vs the likeliness of those targets closing. Simply "wanting to" isn't good enough. There has to be a rhyme and reason to the segmentation.

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2 Step 2: Evaluate and select your target segments

The next step of the STP model is to evaluate the potential and attractiveness of each segment, and to select the ones that you want to focus on. You can use various criteria to assess the segments, such as size, growth, profitability, competition, or alignment with your objectives and capabilities. The goal of targeting is to choose the segments that offer the best opportunities for your business, and to allocate your resources accordingly.

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Janelle Amos

Revenue Campaign Architect | Increase revenue, efficiency, and strategic impact | Who I serve: B2B SaaS companies Series A-C with 50-250 employees
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Also known as whitespacing -- super valuable. Whitespacing helps the revenue team work together toward the same goal. Also critical to layer in data here too, and just not "gut feels" on the lists. There has to be a rhyme and reason or the evaluation is all wrong.

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3 Step 3: Develop your positioning strategy

The final step of the STP model is to create a unique and compelling value proposition for your target segments, and to communicate it effectively to your customers. This is called positioning, and it involves defining how you want your customers to perceive your products or services, and how you want to differentiate yourself from your competitors. The goal of positioning is to create a distinctive and memorable image of your brand in the minds of your customers, and to influence their purchase decisions.

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4 Step 4: Design your marketing mix

Once you have defined your positioning strategy, you need to design your marketing mix, which is the combination of the four Ps: product, price, place, and promotion. Your marketing mix should be consistent with your positioning strategy, and should deliver the value proposition that you promised to your target segments. The goal of the marketing mix is to create a satisfying and profitable exchange of value between your business and your customers.

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5 Step 5: Implement and monitor your marketing strategy

The next step is to implement your marketing strategy, which means executing your marketing mix and delivering your value proposition to your target segments. You need to ensure that your products or services meet or exceed your customers' expectations, and that your promotional activities reach and persuade your customers effectively. You also need to monitor your marketing performance, and to measure the results of your marketing efforts.

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6 Step 6: Review and adjust your marketing strategy

The last step is to review and adjust your marketing strategy, which means evaluating your marketing outcomes and feedback, and making changes or improvements as needed. You need to analyze the data and insights that you collected from your marketing activities, and to identify the strengths and weaknesses of your marketing strategy. You also need to keep an eye on the changes and trends in your market, and to adapt your marketing strategy accordingly.

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How can you integrate the STP model (segmentation, targeting, positioning) into your marketing strategy?

1

2

3

4

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6

1 Step 1: Segment your market

2 Step 2: Evaluate and select your target segments

3 Step 3: Develop your positioning strategy

4 Step 4: Design your marketing mix

5 Step 5: Implement and monitor your marketing strategy

6 Step 6: Review and adjust your marketing strategy

Marketing

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How can you integrate the STP model (segmentation, targeting, positioning) into your marketing strategy?

1

2

3

4

5

6

1 Step 1: Segment your market

2 Step 2: Evaluate and select your target segments

3 Step 3: Develop your positioning strategy

4 Step 4: Design your marketing mix

5 Step 5: Implement and monitor your marketing strategy

6 Step 6: Review and adjust your marketing strategy

Marketing

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