Question

INPROCON INTERNATIONAL PROJECT CONSULTANS

INFORMATION  

STP of the marketing plan.

1. Segmentation strategy
2. Targeting strategy
3. Positioning strategy

Answer 1

STP in marketing stands for Segmentation, Targeting, and Positioning.

The STP model helps marketers craft their messaging and develop and deliver tailored and relevant messages that engage segmented, target audiences. This approach is useful in developing a digital strategy for content marketing. you'll be able to use STP to use marketing personas and archetypes that help develop relevant and targeted digital communications. This is an audience and customer approach to marketing. The goal is to deliver relevant messages to commercially attractive audience segments. STP focuses on identifying the foremost valuable segments so creating the correct marketing mix and product positioning strategy (think 4Ps) for those segments.

Segmentation:
In marketing, we would like to spot potential customers and convince them to shop for it. We are also inquisitive about convincing past customers to be repeat customers. We try this by providing the products and services they have and wish. It’s all about making the correct people tuned in to our price proposition. Everyone is unique but we also tend to possess interests in common with others. we would like to spot those commonalities within the most refined and granular ways possible. These are called niches. We use segmentation to spot niches with specific needs and desires that we are able to articulate clearly. In mature markets, we use segmentation to search out new customers. Segmentation allows us to focus our messaging and deliver it more effectively. Marketing messages should be designed to deal with and inform each segment of the advantages and features that are most relevant to their segment. this can be a unique approach from mass marketing where one size fits all for all customer types. This approach is more efficient and effective, because it delivers the correct mix to the correct group of individuals, instead of a spray-and-pray shotgun approach. Markets are often sliced and diced supported any variable, as long as it’s clearly definable and measurable. Here are some examples:
- Demographics This is the foremost well-known way of classifying people into groups. It is often done by geography, age, gender, income, education, ethnicity, legal status, profession or occupation. Demographics explain ‘who’ your buyer is.
- Psychographics: Psychographics delve into ‘why’ your customer makes a sale. this can be the way of classifying behavior supported personality and emotional traits linked to buying decisions. Psychographics include attitudes, lifestyle, hobbies, personality and leadership traits and attitudes toward risk. Gather data to assist form psychographic profiles for your typical customers through interviews, surveys, questionnaires, customer data, and feedback. this can be the type of knowledge that Facebook gathers supported “likes”. Create archetypes of your customer segments that supported their psychographic profile. You can purchase and access massive troves of knowledge on the interests and attitudes of potential customers from the Internet, web and mobile sources. we'll explore this more after we discuss analytics tools and sources later within the book.
- Lifestyle refers to non-work time endeavors like hobbies, recreational activities, entertainment, vacations, and others.
- Life Stages People change and like different activities and have different interests supported their age. A twenty-something falls into different categories than a 60-year-old. Life Stages is the benchmarking of people’s lives at different chronological stages. try the book “Passages” for an excellent primer on this approach. Geography This is where you find people by country, region, area, zip codes, metropolitan or rural location, climate or mountains, etc. Language With translation tools freely available like Google and Bing we are able to give some thought to targeting language groups relatively easily. Behavior Behavioral economics studies the consequences of psychological, cognitive, emotional, cultural and social factors on the economic decisions of people. In segmenting it refers to how a customer relates to the character of the acquisition, brand loyalty, usage level, benefits sought, distribution channels used, and therefore the reaction to marketing messages. Amazon has mastered accumulating this data to form profiles of purchasers. - Usage level Usage is a remarkable variable. Many companies recognize that they need “power users” that are to blame for an outsize portion of sales. Coke as an example encompasses a club for his or her power users because they estimate that 20 percent of their customers are to blame for 80 percent of their sales. Identity and cultivate your power users.

Targeting :

The list below relates to varied criteria for evaluating the potential commercial viability of every segment. Size The market must be large enough to justify segmenting. Market potential size has expanded as Long Tail markets have emerged. Long-tail refers to markets that will be reached via the net where there's no concentration geographically but there's enthusiastic interest diffused across the world. Add up all those loners and that they can represent significant markets. The more idiosyncratic your offering the more you may be marketing across geographic zones. Difference Segments must be distinct and identifiable. Measurable differences must exist between segments. Measuring tools and techniques have proliferated with digital marketing. Google Analytics may be a major tool. Money It has to be worthwhile economically. The anticipated incremental profits must exceed the extra marketing costs. the price of acquisition of a customer (CAC) must be but their lifetime value of purchases (LTV). CAC Accessibility The potential customers in each segment must have the flexibility to receive your marketing messages and distribution networks must be ready to reach them. Different segments answer different benefits so target communicating the various benefits.

Positioning:

Positioning maps the variables discussed within the Segmenting and Targeting steps and defines the space where your offering resides relative to competitors within the view of your customers.
Thoughtful positioning is critical in staking out a competitive advantage within the market.
Positioning may be a component of Branding, which we are going to discuss next. Customer perceptions and feedback influence a brand’s positioning within the market.
Three sorts of positioning impact a brand and its competitive advantage:
· Functional
· Symbolic
· Experiential
Functional Positioning
Functional Positioning needs to do with feature sets and user experience.
It is focused on the aspects of the worth proposition that talk to meeting and fulfilling customers’ needs and desires.
Symbolic Positioning
Luxury and prestige brands operate during this realm. These are the aspirational elements of your offering; the characteristics of the brand that fulfill customers’ self-esteem.
Experiential positioning
Experiential positioning focuses on the weather of a brand that addresses emotional reference to customers.

These three elements combine to position the brand. Positioning may be a conceptual tool to assist tailor your value proposition and communicate it to customers. you wish to spotlight your advantages relative to competitors and communicate this distinction during a compelling thanks to customers.