What's up brown builders, Steven Houraghan here BrandMasterAcademy.com
and in this video, you're going to learn what STP marketing is with segmentation targeting
and positioning examples.
So you can understand one of the most important concepts in modern marketing to resonate deeply
with laser target customers.
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Now, STP marketing is one of the most important concepts from modern marketing.
While mass marketing is a bit like spraying the market with a machine gun, the STP model
takes a sniper like approaching, getting specific about the target audience and the conditions
that they exist.
STP represents the change in marketing from a product centric, focus to more of a customer
centric, one.
So brands can analyze and understand their target audience and position themselves to
better appeal to them.
In this video, you're going to learn what STP marketing is.
Its benefits and topics.
To learn how to leverage it for your brown strategy.
So what is STP marketing?
Well, STP marketing is a three-step model that allows brands to number one, segment
their target market.
Number two, target specific sector.
And number three position to appeal to those segments.
It allows brands to develop hyper-targeted positioning and messaging, which translate
into more effective marketing strategies, more relevant to their target audience groups.
Now, STP is an acronym for the three described steps.
So segments.
Targeting and positioning and using the STP process, brands armed with a powerful and
a highly relevant understanding of their audience, their challenges, their fears, their desires,
their wants, and their needs.
In other words, they have everything they need to resonate and influence the buying
decision of their target audience and this STP model, this segmentation targeting and
positioning model.
Highly effective because it trims the fat, an unnecessary cost, an effort of marketing
to groups who are unlikely to want or need what the brand has to offer.
Essentially marketing becomes cheaper and responses are dramatically enhanced.
On the flip side brands that avoid the STP approach and use broad based messaging and
positioning are less relevant to their audience.
And I have to work much harder to achieve the desired response.
In fact, almost 60% of customers say the personalization directly.
Their decisions to buy from certain brands or 44% agreed that experiencing personalized
positioning or experiencing personalized communication from a brand really influences their decision
to buy from that brand again.
So let's have a look at some benefits of STP marketing or the STP model.
Now I've already alluded to some of these benefits a little earlier through enhancing
the efficiency.
And the effectiveness of marketing campaigns and ultimately attracting more relevant buyers.
And that is what have questioned the main driver behind the STP approach.
But let's have a look at some more benefits.
Number one, higher relevance to buyers through segmentation and targeting brands can refine
their position and retune their message and really hit the right chords with the segments
of the market that.
To appeal to, or who want or need what the brand has to offer.
The more relevant the message, the more the audience see themselves in the story of that
brand.
And the more acute the painpoints are, thread the copy, and the more likely they are to
see themselves in that story, or to see themselves in the outcome that the brand is offering.
Number two, lower marketing costs.
So another key benefit to the STP process is the reduction of costs of marketing spend
broader based marketing aims to cast a wide net, and you need to spend a lot of money
to do that.
And there's a lot of wastage of marketing budget by casting such a wide net, but laser
focused STP marketing aims for specificity and relevance over media spend.
And this is especially important for smaller businesses that simply don't have.
The budget.
They don't have the deep pockets to be able to spend on wide net marketing campaign.
So the more efficient the campaign, the better and the STP approach really does help them.
But along with lower marketing costs and higher relevance, there are more benefits to the
STP approach, including increased sales through highly targeted campaigns.
More engaged followers who feel understood avoiding campaign wastage by attracting the
right audience.
It also offers smaller businesses, a seat at the advertising and marketing table, and
it's more effective in allocation of marketing budget as well to not have to cast that wide
net and take the broad-based approach.
It also offers deeper insights.
Into the customer, which can be used to really resonate with who they are.
Now, if you want to apply the STP marketing model to your business, follow the steps in
the step formula, which you're about to learn.
Now, the step formula is the easiest way to summarize and to memorize the STP marketing
process.
So it's segmentation plus target.
Equals positioning.
So follow each step in the formula on arm, your brown, with the ability to reach customers
more effectively, step one segmentation.
Now this step is all about slicing your market up into the different groups of people that.
Within your market based on a criteria that is most important for your products or services,
but there are four popular types of customer segmentation, number one, geographic segmentation.
So define this segment by dividing your audience, according to their country, the region, their
state, their city, their.
Their neighborhood and so on.
Number two, demographic segmentation.
So this segments, your customers based on their age, their gender, their education level,
their occupation, or marital status, their ethnicity and their sexuality.
And then you have psychographic segmentation and the audience here is segment.
To define who the customers are through their opinions, their activities, their hobbies,
and their lifestyle, etc
And then you have behavioral segmentation, and this is all about defining your audience
by dividing them into the groups of people based on their purchase behavior.
So in other words, buy what they buy, buy what they browse, how they buy, how often
they buy, etc
Yeah.
The second step of the STP marketing process is targeting your goal on this step is to
look at the segments created on the first step and then see which segments are most
likely to convert and ultimately become customers highly sought after target segments might
include any or all of the following high profitable.
Low cost of acquisition and high growth potential.
So when analyzing your segments, you want to look at the following.
So you want to look at the size.
So how big is the market segment?
How likely is that segment to grow in the future?
And what does that growth potential look like profitability.
So uncover which segments are willing to spend more on the products or services that you
have to offer, which segments have higher lifetime value.
Of profitability and reachability, it's important to understand how hard or how easy it is to
reach the segment with your marketing strategy.
Now, the best way to do this is to include customer acquisition costs, to see which segments
are higher or lower.
Our customer acquisition costs means lower profitability.
So consider these factors carefully when defining your targets to ensure that your target on
the segments that you've defined, represent the best opportunity for your brand to grow.
And step number three is positioning.
Once you've segmented your market and clearly defined the segments that your brand or your
campaign will target.
Now it's time to move to the final step of the STP process, which is to position effectively.
Now whether you're positioning a brand or its products or services positioning isn't
done in a silo
The position a brand takes must consider the other competitive players to ensure that the
brand's offering is absolutely unique when compared to those competitors and without
effective positioning, the offer will represent more of the same, which is very easy for the
market to ignore.
So you don't want to be the same.
You don't want to come cross
As being the same, you want to have something distinctly different and that is positioning
1 0 1.
So let's take a look at an example of STP marketing.
They are, Tesla is a great example of segmentation targeting and positioning inaction because
the global car market has many different sectors.
From the giant gas guzzling four-wheel drive enthusiasts to the petite and cheek European
hatchback fans and everywhere in between Tesla's segmentation, isolated, the electric
car market, and more specifically the gap in the electric performance car market.
So Tesla's positioning approach was to go deep.
And then wide later they established themselves as a prestige luxury electric sports car before
later expanding into wider segments with broader appeal.
So using the STP approach, Tesla identified the market by segments, defined the knee segment
that they wanted to target.
And then they position the.
To appeal to that segment with the flexibility to expand later into the broader electric
car market.
Now STP marketing is without a doubt, the key model to help you identify your most valuable
customers and position yourself as the best brand for them, not only is this approach
efficient and effective, it can help any type or size of business to grow and to gain market
share.
By engaging with personalized and relevant messaging designed to appeal, to specific
target segments.
So even if you have plans to take over the world with your brand, give that brand a chance
to find early success by tightening up who it's for and how it's going to connect.
If you want to learn more about positioning approaches and how to define your position
in the market, then this video will help you add until next time, brand like a master
And I'll see you in the next video.