What is STP (Segmenting, Targeting, Positioning) in Business? Here are Examples and How to Analyze It
In running a business, STP is needed for marketing strategy. STP stands for segmenting , targeting , positioning . These three things are related to each other to run the marketing strategy that has been prepared.
STP is one of the supporting aspects so that your business can run and develop well. The application of STP in business is as a marketing technique used to achieve predetermined targets.
Learn more about what STP is, its goals and benefits, and how to implement STP in your business below.
What is STP?
STP stands for segmenting , targeting , positioning , three things that form a marketing strategy used to develop a business.
Segmenting , targeting , positioning are three stages that must be done by entrepreneurs to develop their business. This applies to every industry of goods or services and can be done offline or online .
STP is an aspect that can affect image, brand image , and overall marketing. However, to be able to apply STP to a business, you must first conduct a SWOT ( strength, weakness, opportunity, threat ) analysis.
In practice, STP has proven effective in creating a company’s marketing plan . One of the benefits of STP is that you can more easily determine the company’s position in the market.
Generally, the use of STP focuses on the effectiveness of an advertisement and campaign from a brand . With this, you can determine the right business segmentation.
How to Analyze STP in a Company
As mentioned earlier, STP stands for segmenting , targeting , positioning . Each of these stages plays a role in formulating a company’s marketing strategy.
Not only that, every process that is passed also needs to be analyzed. Here are some STP analysis in the company that you need to know:
1. STP Segmenting Analysis
Segmenting is a process to group, classify, categorize, all potential targets of the product to be marketed. Then divided again based on buyers and needs, characteristics, and others.
The benefit of this segmentation STP analysis is as a basis for determining strategy components for selecting target markets. So that later it can make it easier for you to determine the next steps.
Segmenting is the key if you want to beat your competitors. The way to do this is by looking at the market from a different perspective and way than your competitors.
There are several aspects that can influence this STP segmentation analysis , including:
- Demographic: This segmentation is done by dividing the market into groups based on demographic aspects. Such as age, gender, income, race, education, occupation, and geography.
- Psychographics: This segmentation is done by dividing the market into groups based on aspects of social class, lifestyle, personality, and others that are included in psychographics.
- Behavior: This segmentation is done by dividing the market into groups based on behavior, feelings, how consumers use the product, and brand loyalty. Generally, this segmentation is divided into two types, namely product users and non-product users.
2. STP Targeting Analysis
The next step in STP is targeting . When you have found a segmentation opportunity, then you determine the target market. What you need to do is conduct a survey to find out the market conditions.
The purpose of STP targeting is so that you can set the right target. There are three aspects that you should pay attention to, including:
- Market profit: in this case you have to look wider and deeper regarding the target market profit. Especially if there are competitors in the same segmentation. The purpose of this STP is to ensure that you can get a big profit
- Company strengths: in this case you must know whether the company has the strength and expertise to be able to master the target market segment or not.
- Competitors: in this case you have to prepare yourself and your company for every form of competition that exists. Especially competition that can affect customer appeal.
3. STP Positioning Analysis
Another step of STP analysis is positioning . The goal of STP positioning is to influence how a segment of a particular market views a product and/or service from your company compared to that of your competitors.
In simple terms, the benefit of STP positioning analysis is to show how the product you are marketing can be differentiated from similar competitor products.
There are several things you can do for positioning , including:
- Placement based on product usage
- Placement based on product differences
- Placement based on product users
- Placement by product category
- Placement based on product features
- Placement based on competitors
- Placement by association
- Placement based on problems
Examples of STP in Companies
Basically, the application of STP in business can be done by planning, acting, and implementing marketing of products or services that have been marketed. But before that you must first conduct a target market analysis.
This means that to be able to implement STP in your business, you must first know whether your target segmentation needs the product or service being marketed or not.
Then, if you have determined the market segmentation, you can choose and divide which groups are in accordance with the target market segmentation. Next, you can explain the advantages of the products and/or services being marketed as a form of positioning .
For example, STP in a company is when you market beauty products. Then your market segmentation is women. Then from that segmentation you can divide groups based on age, skin type, skin problems, and others.
Then finally place your product according to the product’s usefulness or function for the segmentation group. So that later the beauty products you market can be right on target.
Thus the explanation of what STP is, the benefits, to examples of STP in companies and its implementation that you need to know. The thing you need to pay attention to is when you have prepared and implemented a business strategy correctly, then you can achieve success easily.
