STP: 3 must-know steps to build a successful STP strategy
STP marketing is an effective tool to help businesses focus on the most potential market segment. But how to divide and determine the right way quickly – compactly – effectively?
Let’s take a look at some tips with CleverAds!
1. What is the STP Strategy?
STP stands for the first 3 letters of 3 words: Segmentation, Targeting and Positioning.
STP strategy helps businesses analyze large markets into small parts, select the right market with business resources and build a clear brand image.
Instead of spreading resources, STP helps businesses choose the right potential market and make good profits.
2. Steps to create an effective STP marketing plan
2.1. Market Segmentation
Market segmentation is a business activity that divides customers in a large market into groups with similar behaviours, needs, and characteristics.
Each business will have a different division, but the usual criteria are demographics, behaviour, psychology, and geography.
To fractionate the market, it is necessary to research to understand the market size, potential and trends.
2.2. Selecting target markets in STP marketing strategy
The main objective for selecting a target market is to determine a better competitive advantage for the business.
With a clear understanding of the target market, businesses can devote time and resources to thoroughly research and develop products tailored to this market’s unique requirements.
For the selection to be highly effective, the target market needs to meet the following four criteria:
- Feasible: The enterprise has enough resources to serve the market
- Accessibility: The business can reach customers
- Sustainability: The market size must be large enough and profitable for stable profitability.
- Measurable: to identify the most accurate market segment.
2.3. Brand positioning (Targeting)
Brand positioning is the process of developing products and brands so that they have a unique advantage in the market. As a result, customers easily remember brands and products that stand out more than competitors.
To be positioned, businesses need to have a vivid understanding of their strengths and those of their competitors, along with the needs of their target customers.
Requirements of a brand positioning strategy include:
The selected attribute stands out and sets itself apart from the competition.
Match the target customer
Simple, easy-to-understand specific images
3. The role of STP marketing in business
It is strenuous to penetrate the market if the product does not have many highlights and a mass customer base.
However, with a clear STP strategy, businesses can optimize resources and increase profits by serving the right target customers.
The essential thing about STP is that instead of expanding the market and spreading out to many different customer files, this strategy helps businesses focus on a smaller but much better quality customer file.
This strategy is functional for businesses that are doing business in an already saturated market and need to find a niche.
4. A practical example of a successful application of STP marketing strategy
Considered one of the world’s largest fast fashion empires, Zara is a testament to the successful application of STP.
Customers are always the focus of each Zara design. Their STP marketing strategy is analyzed below:
4.1. Market segmentation in STP marketing strategy
- Demographic segmentation: Male and female aged 15 -45, with moderate income.
- Psychology: Love and follow the latest fashion trends.
- Geography: Living in densely populated urban areas
4.2. Selecting the target market
Male, female, age 15 – 45 years old
Highly interested in fashion, especially the latest fashion trends, educated and usually in the middle-income group
4.3. Market positioning
Zara is famous for being the brand that captures fashion trends most quickly. The stores have new items constantly and always stay in style.
It is always positioned as an extremely trendy fashion brand with highly affordable prices, targeting middle-income customers passionate about fashion.
Thanks to clearly defining segments and customers from the beginning, Zara has become a fashion empire with prominent brand recognition in customers’ hearts. Want to be the trendiest without spending much money? It’s all at Zara.
Conclude
STP marketing strategy is critical to helping businesses position themselves in the market.
Hopefully, the sharing of CleverAds will help you have a clearer perspective.
