Segmentation, Targeting, & Positioning (STP Marketing): The Marketer’s Guide

As a content material strategist, I prefer to ask my purchasers numerous questions, beginning with, “Who’s your target market?”

However are you aware what reply I all the time dread listening to? “Everybody”

Whereas it’s good to consider that everybody can be all in favour of buying your services or products, this definition (or lack thereof) creates far more be just right for you and likewise does a disservice to your precise goal market. That is the place segmentation, focusing on, and positioning come into play.

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We developed this information that can assist you perceive how and why you must make investments time into STP for higher, more practical advertising and marketing. Let’s dive in.

At its core, STP advertising and marketing lets you higher goal your advertising and marketing messages and higher serve your buyer base.

This is an instance: I as soon as created a advertising and marketing technique for a health attire model. Slightly than enchantment to all health fans throughout the board, the model wished to focus on a particular phase inside their goal market: feminine yoga followers of their 30s and 40s. 

Finally, our advertising and marketing marketing campaign was rather more environment friendly and cost-effective since we knew our viewers, the place to achieve them, and what messages would resonate.

Conducting an STP Advertising Evaluation

STP lets you take a big, nameless viewers and outline how your totally different merchandise (or totally different parts of the identical product) relate to particular shopper segments inside that bigger viewers — thus understanding find out how to place your product(s) and messaging to seize the eye of every phase.

Let’s unpack every a part of the segmentation-targeting-positioning mannequin.

1. Segmentation

audience segmentation criteria

Segmentation refers back to the strategy of dividing your viewers into smaller teams primarily based on sure traits. This course of lets you group your particular person viewers members into comparable teams so you possibly can higher talk your merchandise, options, and advantages which may be most related to them.

You may phase your viewers primarily based on a number of of those standards:

  • Demographics, which generally reply the query of who your purchaser is (e.g. age, gender, training, location, and occupation)
  • Psychographics, which reply the query of why your purchaser buys (e.g. priorities, persona traits, and beliefs and values)
  • Life-style traits, resembling hobbies, leisure preferences, and non-work actions
  • Conduct, resembling model loyalty, channel preferences, and different procuring habits

Segmentation could sound a little acquainted to a different course of we regularly talk about right here on the HubSpot weblog — creating purchaser personas.

Whereas the 2 are very comparable,  purchaser personas provide help to create a handful of buyer profiles that symbolize your broader viewers. Segmentation lets you cut up your viewers into numerous teams, every of which you’ll be able to uniquely goal.

For instance, let’s say Paws & Tails is a Chicago pet-sitting firm that provides pet-sitting, canine strolling, and boarding providers. Given the huge variety of pet homeowners within the metropolis, they should phase their viewers into smaller teams to raised perceive find out how to place their providers.

Based mostly on their analysis and present buyer base, they cut up their viewers into three major segments:

  • Phase A is made up of high-income pet homeowners who work usually and want daytime canine strolling and pet pop-in visits.
  • Phase B is made up of middle-class people and households who journey and want in a single day boarding or pet-sitting providers.
  • Phase C is made up of older pet homeowners and retirees who need assistance caring for his or her pets.

2. Focusing on

Along with your viewers segments in hand, it’s time to maneuver on to the focusing on part. First, nonetheless, it’s essential to determine which segments are price focusing on together with your advertising and marketing. To decipher this, I prefer to ask myself the next questions on every phase:

  • Is that this phase composed of sufficient potential prospects to justify focusing on? Would it not yield sufficient earnings if the phase have been to transform?
  • Is it measurably totally different from the opposite segments?
  • Is it accessible by all members of Advertising and Gross sales?
  • Is your organization geared up and in a position to serve the phase? Are there any bodily, authorized, social, or technological obstacles that might stop that?

Selecting what segments to focus on is a strategic resolution. Fortunately, sure strategic planning fashions — the PESTLE evaluation is a private favourite — might help you higher perceive the viability of every phase.

It takes numerous work to efficiently goal a phase of your viewers. However from my expertise, whether or not you’ve recognized two segments or ten, don’t really feel the necessity to goal multiple phase directly. The truth is, I’ve discovered that focusing on separately might help you higher place your advertising and marketing for every particular phase.

customer segmentation example

Following our instance from earlier than, Paws & Tails conducts analysis to raised perceive its Chicago viewers. Paws & Tails finds that Phase A makes up 60% of its market measurement, Phase B makes up 30%, and Phase C makes up 10%. Furthermore, Phase A has the next common revenue and is keen to pay extra for pet-sitting and strolling providers. Due to this, they select to concentrate on Phase A.

3. Positioning

brand positioning map example

At this level, you must perceive the demographics, psychographics, motivations, and ache factors of the segments you’ve chosen to focus on, which may present a spot to begin relating to positioning your services or products.

First, take a step again and look at your services or products by the angle of your chosen phase. In case you have been of their sneakers, why would you select your product over a competitor’s? What options or advantages are most related to you, primarily based on the motivations and ache factors you’ve recognized?

This data is vital to defining your model positioning and understanding the way it stacks up subsequent to your opponents. One solution to perceive the place you, effectively, stand is by constructing a positioning map, which is “the visible plotting of particular manufacturers towards axes, the place every axis represents an attribute that’s recognized to drive model choice.”

The phase you select to focus on ought to dictate what two attributes you plot in your positioning map. For instance, let’s say Paws & Tails decides Phase A selects pet-sitting manufacturers primarily based on two attributes: service space and reliability.

By understanding 1) what the goal phase deems most vital for model choice and a couple of) the place its opponents succeed (and fall brief), Paws & Tails is ready to establish an open market alternative and place its advertising and marketing to finest match the wants and targets of its viewers.

Utilizing Segmentation, Focusing on, and Positioning in Advertising

The STP mannequin is a priceless addition to any advertising and marketing technique, no matter your trade, product, or viewers. It prioritizes environment friendly and efficient advertising and marketing and ensures you’re delivering solely probably the most related, focused messaging throughout the board.

It additionally performs an vital position in growing different methods, resembling your purchaser personas, buyer lifecycle phases, and core model proposition.

By main with a consumer-centric strategy like STP, you possibly can make certain that each inch of your advertising and marketing is related to your viewers — thus, rising the chance that they convert, buy, and develop into lifelong prospects.

Examples of Nice Market Segmentation and Positioning

Manufacturers are segmenting, focusing on, and positioning their audiences and advertising and marketing consistently, oftentimes with out us (customers) even noticing. Ever seen a model or product and thought “Huh, that’s excellent for me” or “Wow, proper place on the proper time”? Yeah … you’ve been topic to the STP mannequin.

Let’s overview a number of examples of nice advertising and marketing segmentation and positioning.

1. Panera Bread

STP marketing example: Panera BreadWith numerous quick informal eating places on the map, it’s exhausting to determine the place to eat whenever you’re within the temper for a fast meal. For some cause, Panera Bread all the time involves thoughts (not less than for me).

Panera has efficiently cornered the “health-conscious” and “climate-conscious” phase of the quick informal eating trade. Is Panera’s meals so totally different from different quick informal choices? Not fully.

However by branding themselves with the angle that “we consider that good meals, meals you possibly can be ok with, can convey out one of the best in all of us”, Panera stays top-of-mind as a spot to get high-quality meals, quick.

2. AllBirds

STP marketing example: AllBirdsLike eating opinions, there are so many shoe manufacturers available on the market. However AllBirds didn’t let that cease it from carving out a brand new area of interest in a busy house stuffed with comfy, energetic shoe choices.

How did AllBirds place itself to set itself aside from the competitors? By elevating its eco-consciousness and inserting that entrance and heart in its advertising and marketing. In accordance with the AllBirds web site, the model “crafts with planet-friendly pure supplies, like merino wool and eucalyptus timber, as a result of they’re our greatest likelihood for a sustainable future.”

At first look, AllBirds sneakers don’t look too terribly totally different from different working or strolling sneakers. Nonetheless, its viewers phase that cares about sustainability and earth-conscious merchandise is aware of the distinction.

3. Billie

STP marketing example: Billie

Now not can companies merely phase their audiences by “males” and “ladies” — the people inside every broad gender group differ an excessive amount of, and razor model Billie took be aware of this.

In an effort to extinguish the “pink tax,” Billie markets cost-friendly razors and related merchandise. Furthermore, they work to normalize physique hair and different forgotten or shamed elements of ladies’s our bodies.

Via this positioning, Billie is ready to set their merchandise aside from opponents and create a robust, optimistic group round their model.

4. Hinge

STP marketing example: Hinge

The world of on-line courting is a busy, unusual place. From Tinder to, there appears to be a spot for everybody to fulfill, effectively, anybody. Hinge got here on the scene solely a handful of years in the past, but it has skyrocketed to the highest of the checklist of the preferred and dependable courting app.

Time and time once more, I’ve heard that Hinge is a favourite as a result of it works — that means it helps folks meet folks and make actual relationships. You wouldn’t suppose a courting app would place themselves to finally be pointless, however that’s precisely what Hinge has finished. The truth is, its mission assertion is to “[build] an app that’s designed to be deleted.”

By placing the wants and needs of its viewers entrance and heart, Hinge has created a extra reliable, in-demand on-line courting expertise and set itself aside from its opponents.

The Case for Utilizing STP Advertising

The segmentation-targeting-positioning mannequin is designed that can assist you higher goal your advertising and marketing messages and higher serve your buyer base. It’s a win-win for you and your prospects!

This text was initially revealed October 29, 2020 and has been up to date for comprehensiveness.

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