The Marketer’s Information to Segmentation, Concentrated on, & Positioning (STP Advertising)

by | Dec 9, 2021 | Etcetera | 0 comments

I once heard a brand spanking new business owner define their target market as … look forward to it … “everyone”.


While it’s nice to believe that everyone may well be fascinated about purchasing your product or service, it’s not smart to stipulate your target market as such.

No longer simplest does this definition (or lack thereof) create way more be simply best for you; it moreover does a disservice to your actual target market — by means of over-widening your scope, you fail to inform and train your target audience about how your product or service can reinforce their lives.

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That’s the position segmentation, focusing on, and positioning come into play. We complex this data that can assist you know how and why you should invest time into upper working out your target audience and concentrating for your promoting and advertising and marketing. Let’s dive in.

At its core, STP promoting and advertising and marketing means that you can upper function your promoting and advertising and marketing messages and better serve your purchaser base.

The way can also reveal space of pastime markets, uncover new purchaser or market possible choices, after all making your promoting and advertising and marketing efforts further surroundings pleasant and cost-effective.

Enticing in an STP Promoting Analysis

STP implies that you’ll be able to take a large, anonymous target audience and description how your different products (or different components of the an identical product) relate to precise consumer segments inside that upper target audience — thus working out learn how to position your product(s) and messaging to grab the attention of each and every segment.

Let’s unpack each and every part of the segmentation-targeting-positioning taste.

1. Segmentation

audience segmentation criteria

Segmentation refers to the method of dividing your target audience into smaller groups in step with sure characteristics. This process implies that you’ll be able to staff your own target audience people into an an identical groups so that you’ll upper be in contact your products, choices, and benefits that may be most associated with them.

You’ll segment your target audience in step with numerous of the ones requirements:

  • Demographics, which normally answer the question of who your buyer is (e.g. age, gender, education, location, and profession)
  • Psychographics, which answer the question of why your buyer buys (e.g. priorities, personality traits, and beliefs and values)
  • Way of living traits, paying homage to hobbies, recreational preferences, and non-work movements
  • Conduct, paying homage to brand loyalty, channel preferences, and other purchasing groceries habits

Segmentation would in all probability sound a little familiar to another process we ceaselessly speak about proper right here on the HubSpot blog — growing buyer personas. The two are very an an identical as they permit you to drill down a very powerful components to your target audience.

Then again where buyer personas permit you to create a handful of customer profiles that represent your broader target audience, segmentation implies that you’ll be able to minimize up your target audience into a lot of groups, each and every of which you’ll uniquely function.

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For example, let’s say Paws & Tails is a Chicago pet-sitting company that provides pet-sitting, dog walking, and boarding services and products. Given the large collection of pet householders throughout the the city, they need to segment their audience into smaller groups to raised know how to put their services and products.

Consistent with their research and provide purchaser base, they minimize up their target audience into 3 primary segments:

  • Phase A is made up of high-income pet householders who artwork ceaselessly and want sunlight dog walking and pet pop-in visits.
  • Phase B is made up of middle-class folks and families who trip and want in one day boarding or pet-sitting services and products.
  • Phase C is made up of older pet householders and retirees who need be in agreement caring for their pets.

2. Focused on

Along side your target audience segments in hand, it’s time to move immediately to the focusing on phase. First, alternatively, you must come to a decision which segments are value focusing on along with your promoting and advertising and marketing. To decipher this, ask yourself some questions about each and every segment:

  • Is this segment composed of enough possible customers to justify focusing on? Would it not now not yield enough income if the segment had been to turn out to be?
  • Is it measurably different from the other segments?
  • Is it in the market by means of all people of Promoting and Product sales?
  • Is your company supplied and able to serve the segment? Are there any physically, legal, social, or technological hindrances that may prevent that?

Choosing what segments to concentrate on is a strategic selection. Thankfully, sure strategic planning models identical to the PESTLE analysis will permit you to upper understand the viability of each and every segment.

It takes a lot of artwork to successfully function a segment of your target audience. Whether or not or now not you’ve known two segments or ten, don’t truly really feel the need to function more than one segment right away. Plus — focusing on one at a time will permit you to upper position your promoting and advertising and marketing for each and every explicit segment.

customer segmentation example

Following our example from forward of, Paws & Tails conducts research to raised understand its Chicago target audience. Paws & Tails unearths that Phase A makes up 60% of its market size, Phase B makes up 30%, and Phase C makes up 10%. Moreover, Phase A has a greater reasonable income and is ready to pay further for pet-sitting and walking services and products. Because of this, they make a selection to be aware of Phase A.

3. Positioning

brand positioning map example

At this degree, you should understand the demographics, psychographics, motivations, and pain problems with the segments you’ve decided on to concentrate on, which may give a place to begin out in the case of positioning your product or service.

First, take a step once more and examine your product or service during the point of view of your decided on segment. For individuals who had been in their footwear, why would you choose your product over a competitor’s? What choices or benefits are most associated with you, in step with the motivations and pain problems you’ve known?

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This information is essential to defining your brand positioning and working out how it stacks up next to your pageant. One method to understand where you, well, stand is by means of construction a positioning map, which is “the visual plotting of explicit producers against axes, where each and every axis represents an function that is known to drive brand selection.”

The segment you choose to concentrate on should dictate what two attributes you plot to your positioning map. For example, let’s say Paws & Tails decides Phase A selects pet-sitting producers in step with two attributes: provider space and reliability.

Via working out 1) what the target segment deems most essential for brand selection and 2) where its pageant achieve success (and fall transient), Paws & Tails is able to identify an open market selection and position its promoting and advertising and marketing to best have compatibility the wishes and goals of its target audience.

Using Segmentation, Focused on, and Positioning in Promoting

The STP taste is a profitable addition to any marketing strategy, irrespective of your business, product, or target audience. It prioritizes surroundings pleasant and sure promoting and advertising and marketing and promises you’re delivering simplest necessarily probably the most similar, targeted messaging across the board.

It moreover plays a very powerful place in rising other strategies, paying homage to your buyer personas, purchaser lifecycle ranges, and core brand proposition.

Via primary with a consumer-centric approach like STP, you’ll be sure that each inch of your promoting and advertising and marketing is said to your target audience — thus, increasing the risk that they convert, achieve, and become lifelong customers.

Examples of Great Market Segmentation and Positioning

Producers are segmenting, focusing on, and positioning their audiences and promoting and advertising and marketing many times, oftentimes without us (customers) even noticing. Ever noticed an emblem or product and concept “Huh, that’s highest for me” or “Wow, correct place on the right kind time”? Yeah … you’ve been matter to the STP taste.

Let’s assessment a few examples of vital promoting and advertising and marketing segmentation and positioning.

1. Panera Bread

STP marketing example: Panera BreadWith a lot of fast casual consuming puts on the map, it’s arduous to come to a decision where to consume while you’re throughout the mood for a quick meal. For some explanation why, Panera Bread all the time comes to mind (at least for me).

Panera has successfully cornered the “health-conscious” and “climate-conscious” segment of the fast casual consuming business. Is Panera’s foods so different from other fast casual alternatives? No longer utterly.

Then again by means of branding themselves with the point of view that “we believe that good foods, foods you’ll feel good about, can ship out the most productive in all other folks”, Panera remains top-of-mind as a place to get prime quality foods, fast.

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2. AllBirds

STP marketing example: AllBirdsLike consuming evaluations, there are so many shoe producers to be had in the marketplace. Then again AllBirds didn’t let that save you it from carving out a brand spanking new space of pastime in a busy space full of comfy, lively shoe alternatives.

How did AllBirds position itself to set itself excluding the competition? Via elevating its eco-consciousness and placing that front and center in its promoting and advertising and marketing. In keeping with the AllBirds web page, the logo “crafts with planet-friendly natural materials, like merino wool and eucalyptus bushes, because of they’re our best likelihood for a sustainable long run.”

First of all glance, AllBirds footwear don’t look too extremely different from other working or walking footwear. However, its target audience segment that cares about sustainability and earth-conscious products is conscious about the difference.

3. Billie

STP marketing example: Billie

No longer can firms simply segment their audiences by means of “men” and “girls” — the folk inside each and every massive gender staff vary quite a lot of, and razor brand Billie took realize of this.

So that you could extinguish the “purple tax,” Billie markets cost-friendly razors and similar products. Moreover, they artwork to normalize body hair and other forgotten or shamed parts of women’s our our bodies.

By the use of this positioning, Billie is able to set their products excluding pageant and create a powerful, positive crew spherical their brand.

4. Hinge

STP marketing example: Hinge

The field of online dating is a busy, unusual place. From Tinder to, there seems to be a place for everyone to fulfill, well, someone. Hinge were given right here on the scene only a handful of years previously, nevertheless it has skyrocketed to the easiest of the document of the most popular and constant dating app.

Time and time all over again, I’ve heard that Hinge is a favorite because it works — this means that it’s serving to folks meet folks and make precise relationships. You wouldn’t suppose a dating app would position themselves to in the end be unnecessary, alternatively that’s exactly what Hinge has finished. If truth be told, its undertaking remark is to “[build] an app that’s designed to be deleted.”

Via hanging the wishes and wishes of its target audience front and center, Hinge has created a further faithful, in-demand online dating experience and set itself excluding its pageant.

The Case for Using STP Promoting

The segmentation-targeting-positioning taste is designed that can assist you upper function your promoting and advertising and marketing messages and better serve your purchaser base. It’s a win-win for you and your customers!

This newsletter was once at first printed October 29, 2020 and has been up-to-the-minute for comprehensiveness.

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