The abbreviation STP stands for segmentation, targeting and positioning. These three elements help to create the right marketing mix to ensure your products and messages suit your target audience.
It’s all about making the right people aware of your value proposition.
Segmentation
Segmentation means breaking down you target market and dividing them into groups of people with common characteristics and needs. It allows better tailoring of messages to customers, as they are placed on segments.
Segmentation can be used in emerging markets to establish clear target groups, or in mature markets to find new customers.
The easiest way to segment your target market is by factors such as demographics, geography, psychographic or behavioral characteristics.
Demographics
This factor explains 'who' the buyers are. Customers can be grouped by personal attributes like geography, age, gender, income level, education, ethnicity, marital status, profession or occupation.
Geographic
This involves figuring or where the target audience may be located. This can be by country, region, city or neighborhood. For example they could be located in metropolitan or rural areas.
Psychographic
This helps to establish why customers may make a purchase. Behavior is classified based on personality and emotional traits which determines what buyers find important in their lives.
Psychographics can include: Lifestyle, personality, hobbies and values.
Data about psychographic data can be gathered through questionnaires, surveys, interviews and feedback.
Of course we did not just make this up, and have used sources to help us explain:
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