Marketing has now become one of the most essential business activity and the 3 important target marketing activities or strategies are segmentation, targeting and positioning. Click here to see 6 important business activities if you miss that.
When it comes to marketing of your brand or business, marketing strategies plays a vital role. There are two main terms considered as the core of marketing. Marketing strategies are based on these two marketing terms.
- Marketing Mix
- Target Marketing Strategies or Activities
Marketing mix also called the 4Ps Product, Price, Place and Promotion. Click here to see detailed article on Marketing mix and their importance.
There are 3 target marketing activities known as Segmentation Targeting Positioning. They are also known as target marketing strategies according to some. These 3 target marketing activities are known as the modern marketing strategies. Segmentation Targeting Positioning are also called Marketing STP.
3 Target Market Strategies – STP
Three main and most valuable marketing strategies include Segmentation Targeting positioning also known as STP. According to many surveys, Segmentation, Targeting and positioning (STP) is one of the best considered marketing strategy model of modern days after SWOT. See our earning section to learn more about SWOT and all other business strategies.
Segmentation, Targeting and Positioning (STP)
The core theme of this target marketing strategy is to focus on target audience and not the products. In simple words, STP means to divide the market into segments and then targeting the best segments and finally positioning yourself so that you can target the segments in the best way you can.
Segmentation is the process of analyzing your overall consumers and dividing them into segments. Let’s suppose you are running a clothing brand and your target consumers belongs to every age group. Which means you are making and selling clothes of children, adults, middle-age and old ones.
Using segmentation as a marketing strategy, you will divide your consumers in these segments. It’s very obvious that older fellows in most cases won’t buy children clothes or vice versa. You will never see a clothing brand displaying all clothes all together. They have different sections for men, women, young or old. These sections are actually segments. These segments helps your consumers or customers to save their time and directs them to the segment or section they want.
The main idea of segmentation is to make segments of similar types of customers. The criteria for dividing the consumers totally depends on you. For e.g. in clothing business discussed earlier in this section, we can divide on basis of age, gender, regional trends, lifestyle and income.
There are mainly four types of market segmentation: Geographic segmentation, Psychographic segmentation, Demographic segmentation and Behavioral segmentation.
Targeting comes after the Segmentation and is as much important as segmentation. Segmentation itself has no such benefits but Segmentation, Targeting and Positioning together can be very effective. Targeting means to analyze all the segments of consumers and identifying which segment you must target.
The target segment should be the one which will give you the most benefit or buy your products the most. This is also done by calculating the estimated profit that each segment can give you. Choose the segment that can possibly give you the best profit.
You need to be very careful and see whether the segment you are choosing has potential. Means customers will consistently buy your products and will you have a steady grow or not?
Size, Money, Accessibility and Difference are four main criteria for analyzing potential of each segment’s consumers. The segment should be large (size), distinct as compared to other segments (difference), the consumers of chosen segment should have financial worth (money) and your consumers must have access to your products or the marketing or advertisement you do (Accessibility).
Positioning comes after Segmentation and Targeting. So, you have divide the consumers into segments and chosen your target segment. Positioning is most tricky and critical as you have to do an analysis of your competitors as well because they might have segmented and targeted the same consumers.
Positioning is not any physical thing or any location to target your product. It includes some important aspects related to your products such as low price, high quality, high reliability, excellent value of money and sustainability. These factors can spotlight your product and not your competitors.
You need to understand and look closely about the needs and requirements of the consumers you have segmented and targeting. Positioning maps can best explain positioning in STP. Positioning maps are also known as perceptual maps as you have to dig out the perception of your targeted consumers. Following is a sample positioning map.
The image shows different brands of cars. They are not placed randomly. You can clearly see the x and y-axis are labeled with High price, low price, high quality and low quality.
The brand that are most close to the center means they have positioned their product in the best way such as they have targeted both low price and high price consumers and given high quality as well.
Consumers that demands super high quality can no doubt pay super high price but these customers are very less means the target audience is quite low in numbers. Most brands don’t target such consumers only due to this reason.
So, this was all about 3 target marketing strategies that are Segmentation, Targeting and positioning. All three of them are significant and valuable for capturing the target market. Please tell us in the comment section below about how much you like our sharing. See our earning section for more interesting and valuable articles to boost your business and entrepreneurial skills. Stay tuned for more and Good Luck with target marketing strategies.