Marketing 1

3.
SEGMENTATION, TARGETING, &
POSITIONING (STP)
Arfadh Baparsyah
- TARGET MARKET DEVELOPMENT LaSalle College Jakarta
- POSITIONING MAP 2019
 S.T.P.
STP stands for segmentation, targeting and positioning. As a marketing
strategy, it plays an important role in aligning your products to the right
customers.

STP is a three-step marketing model that helps you identify your most
valuable type of customer and then develop strategies for marketing
your products directly to that group. STP stands for:

Segment the market.

Target your ideal customers.
Position your offering to the needs of the target group.

The model is useful because you can't sell your products to everyone.
Businesses who know their target customer tend to be much more
profitable since they can provide the exact solutions and messaging the
target group wants to hear.
 Segmentation involves finding out what types of
customers with different needs exist in the
market.

Generally, you're looking at the following types

of segmentation:

Demographic variables such as age, gender,

income, education, location, ethnicity,

Segmentation
language and family size.

Psychographic variables such as lifestyle,

social status and personality type – does this
consumer want to fit in or stand out from the
crowd?

Behavioral variables – is the consumer a light,

medium or heavy user of the product; also,
does she stick with her preferred brand even
when a competing one is on sale?
 Once you've identified the customer segments, you should see
fairly quickly that not every segment is equally attractive to your
business.

Targeting, the second phase of STP, is the act of figuring out

which customer segment it's in your best interest to serve. The
choice will depend on several factors:
How well are the needs of this group being met already? It
will be much harder to appeal to a group that's already being
well served by your competitors.
How large is the group? The market must be large enough to

Targeting warrant segmenting. Your business won't be sustainable if

you slice an already-small customer base into something
even smaller since you're not allowing any room for growth.
Do you have strengths as a business that will help you appeal
to one particular consumer segment over another? For
example, do you already have a reputation in a particular
market?
How accessible is the target group? Realistically, how much
will you have to spend on marketing and advertising to reach
this customer segment? Anticipated profits must exceed the
costs involved or you'll be putting yourself out of business.
 Positioning is the last and some say the hardest part of
STP analysis since you now have to figure out the best
ways to brand yourself to appeal to the target customer.

The goal is to create a clear and positive image in the

minds of consumers as to what the product is all about,
its value and its usefulness.

For example, you may position your fashion brand as

Positioning reliable and long-lasting or you may position it as a

luxury status symbol. A burger joint may position itself
as a provider of cheap and quick lunches or it may
position itself as a source of premium upscale meals.

The position you adopt will stay with you for the life of
the product. It lays the foundation for your value
proposition statement that you'll use to develop the
right marketing tactics for reinforcing the customer's
perception of your brand.
 Market
Segmentation
 What is Market
Segmentation?
Market segmentation is the process of dividing a market of potential
customers into groups, or segments, based on different characteristics.

The segments created are composed of consumers who will respond

similarly to marketing strategies and who share traits such as similar
interests, needs, or locations.
:
MARKET SEGMENTATION IS IMPORTANT BECAUSE:

It saves you a lot of time, money, and other resources than if you were
targeting consumers on a broad or an individual level. In short, it makes
you more efficient.

It also:
allows brands to target specific audiences in a cost effective manner
reduces the risk of an unsuccessful or ineffective marketing campaign
allows brands to prioritize their target audiences.
 A Market Segment is:

a group of customers that your company

understands so completely that when you

Market
design products and services for them, they
say: “This is absolutely perfect for me.”

Segment
They’re the customers most likely to be
profitable for you to serve year after year.

HOW DO YOU MAKE SURE YOU HAVE THE

'ABSOLUTELY PERFECT' PRODUCT / SERVICE
FOR THE RIGHT TARGET MARKET?
 Your Design Target is the bull’s-
eye of a larger population of
customers who share many of
their attributes – and who will
thus be attracted to many of your
company’s offerings, too.

Design
To identify promising Design
Target, look for the overlap in two
customer sets:

Target Main customers who are

profitable promoters of your
products and services.
The conceptually attractive
customer segments created
unintentionally by the
promoters

(Harvard Business Review, 2008)

VANS: ORIGINALLY DESIGNED FOR SKATERS (EXTREME USERS), NOW
WORN BY PRETTY MUCH EVERYONE
 Starting with a specific inspirational design
target will help businesses form a more
efective target market and customer persona

Think of this target as a character you could

define based on a specific understanding of
their behaviours and unmet needs. In what
situation can your idea solve that character’s

Inspirational problem in a new and better way?

Design Target The best design targets are very specific,

embody a high-order need and can even be
extreme in nature.

If you can solve for the extreme user and truly

meet their specific need, there’s a very good
chance you’re going to meet the similar (but
lower-order) needs of a huge cohort of people.
Consumer
Profile
(example)

Credit: Chul hwan Philip Kim via Behance.net

Positioning
Map
 What is a Positioning Map?

One way to approach positioning is through a positioning map. This

document is a visual tool that shows how each customer segment
perceives your brand versus those of your competitors. To create the
map, begin by gathering all the information you have about the market,
such as:

What's important to your target market? What are their pain points?
Which features of your brand or product press all their hot buttons?
Which features are they prepared to pay for?

How do your customers rate your product versus the products of your
competitors? What are the results of your market research?

Who are your competitors? What do customers say about them?

 Once you understand the variables that matter to your
target market, the next step is to plot two key product
benefits on the horizontal and vertical axes of a graph.
These benefits are based on what's important to the
consumer.

Creating a If you were selling a fashion brand, for example, you

might label your horizontal axis low price-high price

Positioning and your vertical axis premium-mass. Now, place all of

your competitors on the map based on the benefits

Map their competing products offer.

With all the competitors mapped, you should be able to

see where there are gaps in the market.
 GROUP
WORK!
Develop an inspirational design target
(try extreme users!)

Develop a positioning map for

Akarsana

Remember to focus on the needs your

brand is trying to solve