The STP marketing model is a three-step process that breaks down your marketing plan in a way that allows you to formulate an advertising plan that works with your brand, your company, and the benefits of your products for the consumers that need them. The name comes from the three steps of the process: Segmenting, Targeting, and Positioning.

To better understand how this model works, it helps to look at each of the individual steps and how they work together for a marketing plan that is sure to increase sales.

Segmenting: Identify Customer Needs

stp marketing approach

Brainstorming is a useful skill in all types of business, and it is in the segmenting step where this skill will come in handy. There will be a lot of note-taking during this step, but it will allow you to figure out where you need to be marketing and will better help you with the next step of the process.

Not everyone uses everything. Some people don't drive, so trying to sell them a car would be a futile attempt. To determine your market, look at the following: demographic, geographic, psychographic, and behavioral.

Many businesses only look at the demographics when they start considering their target audience. Demographics take into account a person's age, whether they're married or not, what education they have, or what occupation they have. Even ethnicity can be a factor when it comes to product placement. However, someone's geographic location can affect their need for a product as well.

Psychographic and behavioral targets get a little more personal. You need to consider personality traits, people's lifestyles and values, as well as how a person will use a product. What types of benefits are they looking for in the products they invest in?

These are your “segments.” These are the groups of people that are most likely to benefit from what you're selling.

Targeting: Evaluate Segments

Once you've determined the market for your product and broken these buyers into “segments,” you need to target your audience. You won’t reach all people of a certain age, so which people in that age group are going to benefit the most from your product? You need to break it down to a specific group or a set of groups before you are ready to launch your campaign.

Look at your individual segments and determine who is best suited for your product. You want a specific market and you want to target people who need what you're offering. You may have more than one segment, but for each of them, your marketing plan will have some differences.

Once you know your specific market, you can tailor your marketing campaign specifically to them. If you're selling an app for iPhones, you won’t make sales targeting Android users. Makes sense, right? Tailor your STP marketing plan and your message to the people that are most likely to buy.

If you would like to know how to market to the Millennials click here: 4 Tips for Marketing to Millennials Based on Research

Positioning: Identify Propositions for Segmented Groups

In this final step before you put your STP marketing plan into action, you will work to align your brand with your target market. The other steps have set it up so that this step should go smoothly. You now know exactly who needs your products and why.

Now you need to come up with what to offer them that influences them to choose you instead of the competition. Are you the innovative and more caring choice? Do you care more about customer needs more than your customer's money? These things matter.

You need to pick the right marketing mix for each customer segment, which means utilizing a positioning map. This map helps you understand how your product helps each segment, and how they perceive your brand. Then you can create a sales pitch that explains to the potential customer how you intend to meet their specific needs. This strategy allows you to be more personal, and it helps them solve a problem.

Putting STP Marketing into Action


The steps of the STP marketing allow you to know your target customers, and you can put your marketing plan into action. Start with a list of goals that you want to accomplish with the marketing campaign.

Along with your STP marketing process, consider where you're advertising. Each demographic has different outlets they get their news. If you're selling to teenagers or college students, you want to be advertising through as much technology as you can, from ads on phone apps to Hulu commercial spots. If you're trying to reach a more advanced demographic, consider newspaper advertising or advertising in certain magazines.

No matter what type of marketing strategy you settle on, whether it's the STP marketing process or something different, you need to reach your buyers, which means that you need to know them. Do the research, and it will pay off.


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