Segmentation, Targeting, and Positioning (STP) in Marketing

STP stands for Segmentation, Targeting, and Positioning. It is a core model in marketing that helps to focus on customer needs rather than just products.

Key Concepts:

• Segmentation: Divide the market into different groups based on characteristics such as age, income, and preferences.

  • Demographic: Factors like age and gender (e.g., Hindustan Unilever targets mothers with Clinic Plus).
  • Geographic: Based on location (e.g., Coca-Cola offering specific packages for rural areas).
  • Psychographic: Based on lifestyle and values (e.g., Starbucks caters to urban café lovers).
  • Behavioral: Focus on consumer actions (e.g., Cadbury uses festivals to drive sales).

• Targeting: Choose the most attractive segments to market to.

  • Strategies:
  • Undifferentiated: Same product for everyone (e.g., salt).
  • Differentiated: Different products for different groups (e.g., Maruti Suzuki offers various car models).
  • Niche: Focus on one specific segment (e.g., specialized beauty products).

• Positioning: Establishing a brand’s unique place in the consumer's mind.

  • Using attributes, benefits, or experiences to differentiate from competitors (e.g., Volvo for safety).

Example - Netflix:

• Segmentation: Viewers based on taste and habits.
• Targeting: Focused on binge-watchers.
• Positioning: Promoting itself as "Entertainment anytime, anywhere."