What is STP Marketing?
STP marketing is a marketing approach that considers three parts: Segmentation, Targeting, and Positioning. Businesses often use an STP marketing structure to analyze how consumers respond to their offerings and how they can manage their operations to meet different market demands. In short, this marketing model requires businesses to divide audience groups they want to reach out to, target each created segment, and then position their products to align with consumer needs.
- Segmentation refers to the process used by businesses to divide audiences into groups. This can be done based on several factors such as locations, age groups, income levels, etc.
- Targeting is the process that follows segmentation, where businesses take up practices to market their products or services to the audience segments created.
- Positioning: It involves using a curated marketing mix that will appeal to audience interests and help businesses to position their products in the market.
The STP model for each B2C or B2B marketing process depends on a formula Segmentation + Targeting Equals Positioning. It helps to break down the components and how businesses can create their marketing mix.
10 Ways to Measure the Success of an STP Model
1. Analyzing customer responses:
The purpose of creating an STP model is to take up an improved measure to reach customers. Businesses can explore how customers respond to their products and services in the market when in place. Are they showing positive responses that can lead to them becoming loyal customers, or are they showing neutral reactions and needing a push to drive their interests? These responses can help determine whether or not the STP model is working in the right direction.
2. The number of leads through segmentation:
An STP model runs on catering to different segments of an audience group. Monitoring the lead generation process through each targeted segment can help determine its success and identify areas that need changes or improvements.
3. Marketing responses:
With the help of STP strategies, businesses can take up the most suitable marketing practices to reach customers. Analyzing how customers react to different marketing elements can help establish the model’s success. It gives them a better idea of the areas of improvement and which practices should continue.
4. Product reach:
If a business is looking to attract customers with the help of product marketing, an STP model can help market it to different segments. The response and reach received through the product is another way to determine its success and allow businesses to tailor their products to align with market needs.
5. Brand recognition:
Even the brand identity of a business is vital to establish itself in the market and create higher recognition amongst target audience groups. The reaction and identification of a brand can help determine how successful an STP model can be. Additionally, the different steps needed to align it with present customer needs.
6. Segment evaluation:
After audience groups are segmented, it is necessary to evaluate them periodically to monitor changes in tastes and preferences, purchasing choices, and more. However, these factors often determine how customers respond to a product or service. Segment evaluation can help determine the success of an STP model by identifying changes, new groups, etc.
7. Current market trends:
The present product or purchasing trends can help monitor the success of an STP model. It allows businesses to identify if their present strategies align with market interests, purchasing decisions, and more.
8. Evaluate present attractiveness:
Similar to market trends, commercial attractiveness allows businesses to identify areas customers lean towards and curate strategies to meet these needs. Analyzing if STP models align with these situations is another way to determine their success and take measures to make suitable changes.
9. Consumer profiling:
At the end of each process, businesses can use consumer profiling periodically to aid the segmentation and targeting process in an STP model. Moreover, these factors can help determine its success and shortfalls as customer needs and behavior constantly change. Profiling will allow businesses to keep up with the dynamic nature of such changes.
10. Product positioning reach:
Product positioning refers to using a marketing mix to promote a product or service in a relevant market. Therefore, analyzing the reach and responses received through this channel can determine if the current STP model is suitable or will need reworking.
Using an STP model benefits businesses looking to promote their work and establish themselves in a market. By determining how successful the STP model is, companies can identify areas of improvement, new opportunities, and more. It will contribute to more desirable results in the future. Hence, it becomes necessary to create strategies that will drive success and even take follow-up measures to monitor if it’s working out.