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STP laptop

What is the STP marketing model?

STP laptop

What is the STP marketing model?

In the past, we’ve talked about useful marketing models such as SOSTAC and AIDA. Today, we’re going to talk about the STP model, which stands for segmentation, targeting and positioning, and focuses on the marketing of specific products or services.

This model is useful for businesses as it has the aim of targeting audiences more effectively. It’s broken down into three simple steps, which you can read about below:

1. Segment your market

First, you need to identify segment bases within your target market. From here, you should determine characteristics of each segment, along with the needs of customers.

For example, a target market might be business owners. However, there is a stark contrast between a millionaire CEO and a one-man start-up. Each forms a different segment, and has their own needs and frustrations.

2. Target best customers

In this stage, you need to take a look at the different segments you’ve identified and evaluate the attractiveness of each. Depending on your product or service, the millionaire CEO may be the more attractive choice, but on the other hand, the one-man band who doesn’t need to sign off any decisions and doesn’t have in-house teams to fulfil every requirement may be better.

This stage doesn’t mean you need to choose just one segment – you can choose several.

3. Position your offering

Within this final stage, you need to position your product with your chosen segment in mind. Each piece of marketing you do for a product should be clearly aimed at a chosen segment. It’s advised to complete a Marketing Mix (otherwise known as the 7Ps of Marketing) for your product in relation to each segment.

While fairly simple, STP allows you to identify who your most valuable types of customer are and to then develop marketing that specifically suits those profiles. This, in turn, allows you to engage with your customer groups better through personalised messaging, and ultimately helps you to sell more!

If you need assistance with marketing your products or services online, we can help here at Engage Web. Speak to our team today to learn more.

Emily Jones

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