Segmenting-targeting-positioning: Difference between revisions

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{{Short description|Framework that implements market segmentation}}

{{Strategy}}

In [[marketing]], '''segmenting, targeting and positioning''' ('''STP''') is a broad framework that summarizes and simplifies the process ofimplements [[market segmentation]].<ref>{{Cite journal name|last=":4">Moutinho,Dibb L.,|first=Sally "Segmentation,|date=1998-01-01 Targeting,|title=Market Positioningsegmentation: andstrategies Strategicfor Marketing,"success Chapter|url=https://doi.org/10.1108/02634509810244390 5|journal=Marketing inIntelligence Strategic& ManagementPlanning in|volume=16 Tourism,|issue=7 Moutinho,|pages=394–406 L|doi=10.1108/02634509810244390 (ed),|issn=0263-4503|url-access=subscription CAB International, 2000, pp. 121–166}}</ref> Market segmentation is a process, in which groups of buyers within a market are divided and profiled according to a range of variables, which determine the market characteristics and tendencies.<ref name=":05">{{Cite book|title = Market segmentation in hospitality research: no longer a sequential process|last = Bowen|first = John|year = 1998}}</ref> The processesS-T-P offramework segmentation,implements targetingmarket andsegmentation positioningin arethree parts of a chronological order for market segmentation.steps:

* ''Segmenting'' means identifying and classifying consumers into categories called segments.<ref name=":6" />

* Segmentation comprises identifying the market to be segmented; identification, selection, and application of bases to be used in that segmentation; and development of profiles.

* ''Targeting'' is the process of identifyingidentifies the most attractive segments from the segmentation stage, usually the ones most profitable for the business.<ref name=":0">{{Cite book |last=Bowen |first=John |title=Market segmentation in hospitality research: no longer a sequential process |year=1998}}</ref>

* [[Positioning (marketing)|Positioning]] proposes distinctive competitive advantages for each segment.<ref>{{Cite journal |last=Maggard |first=John P. |date=1976 |title=Positioning Revisited |url=https://www.jstor.org/stable/1250678 |journal=Journal of Marketing |volume=40 |issue=1 |pages=63–66 |doi=10.2307/1250678|jstor=1250678 |url-access=subscription }}</ref>

* Positioning is the final process, and is the more business-orientated stage, where the business must assess its competitive advantage and position itself in the consumer's minds to be ''the'' more attractive ''option'' in these categories.<ref name=":0" />

== Segmenting ==

{{See|Market analysis|Market segmentation}}

Whereas [[Marketmarket segmentation]] is the act of dividing the market into distinct and meaningful groups of buyers who might merit separate products or marketing mixes.,<ref name=":5">{{Cite journal |lastlast1=Beane |firstfirst1=T.P. |last2=Ennis |first2=D.M. |date=1987-01-01 |title=Market Segmentation: A Review |url=https://doi.org/10.1108/EUM0000000004695 |journal=European Journal of Marketing |volume=21 |issue=5 |pages=20–42 |doi=10.1108/EUM0000000004695 |issn=0309-0566|url-access=subscription }}</ref> In''segmentation,'' in the S-T-P framework, ''segmentation'' means classifying consumers into categories. Therefore, segmentation has two meanings: it denotes both the overall process ([[market segmentation]])<ref name=":5" /> and the first step of the S-T-P framework,<ref name=":6">{{Cite journal |lastlast1=Diaz Ruiz |firstfirst1=Carlos A. |last2=Kjellberg |first2=Hans |date=2020 |title=Feral segmentation: How cultural intermediaries perform market segmentation in the wild |url=http://journals.sagepub.com/doi/10.1177/1470593120920330 |journal=Marketing Theory |language=en |volume=20 |issue=4 |pages=429–457 |doi=10.1177/1470593120920330 |s2cid=219027435 |issn=1470-5931|url-access=subscription }}</ref> it denotes both the overall process ([[market segmentation]]) and the first step of the S-T-P framework, the identification of consumer segments.<ref name=":6" /> This section refers to the first step of the S-T-P model.

Segmenting can be referred to as a process of segregating the market on the basis of different variables.<ref>{{Cite web|last=Alter|first=Tom|date=June 14, 2018|title=What is STP model in Marketing?|url=https://www.makemyassignments.com/blog/what-is-the-stp-model-in-marketing/|url-status=live|access-date=November 22, 2021|website=Make My Assignments}}</ref> However, segmenting a market has widely been debated over the years as researchers have argued over what variables to consider when dividing the market. Approaches through social, economic and individual factors, such as brand loyalty, have been considered<ref>{{Cite book|title = Marketing, Planning and Strategy|last = Jain|first = S C|publisher = South-Western Publishing Co.|year = 1993|___location = Cincinnati, OH, United States}}</ref> along with the more widely recognized geographic, psychographics, demographic and behavioral variables proposed by Philip Kotler.<ref>{{Cite book|title = Marketing Management Analysis, Planning, Implementation, and Control|last = Kotler|first = Philip|publisher = Prentice Hall International|year = 1997|___location = New Jersey}}</ref> Since a single product offered by a firm cannot satisfy the needs of all of the consumers, segmenting a market therefore, is a process of ''organising'' the market into groups that a business can gain a competitive advantage in and satisfy its needs. They must, however, avoid over-fragmenting the market as the diversity can make it difficult to profitably serve the smaller markets.<ref name=":1">{{Cite book|title = Business to Business Marketing|last1 = Vitale|first1 = Robert|last2 = Giglierano|first2 = Joseph|publisher = South-Western publishing|year = 2002|___location = Mason, Ohio}}</ref> The characteristics marketers are looking for are measurability, accessibility, sustainability and actionability.

[[Market segmentation]] is the act of dividing the market into distinct and meaningful groups of buyers who might merit separate products or marketing mixes.<ref name=":5">{{Cite journal |last=Beane |first=T.P. |last2=Ennis |first2=D.M. |date=1987-01-01 |title=Market Segmentation: A Review |url=https://doi.org/10.1108/EUM0000000004695 |journal=European Journal of Marketing |volume=21 |issue=5 |pages=20–42 |doi=10.1108/EUM0000000004695 |issn=0309-0566}}</ref> In the S-T-P framework, ''segmentation'' means classifying consumers into categories. Therefore, segmentation has two meanings: it denotes both the overall process ([[market segmentation]])<ref name=":5" /> and the first step of the S-T-P framework,<ref name=":6">{{Cite journal |last=Diaz Ruiz |first=Carlos A. |last2=Kjellberg |first2=Hans |date=2020 |title=Feral segmentation: How cultural intermediaries perform market segmentation in the wild |url=http://journals.sagepub.com/doi/10.1177/1470593120920330 |journal=Marketing Theory |language=en |volume=20 |issue=4 |pages=429–457 |doi=10.1177/1470593120920330 |issn=1470-5931}}</ref> the identification of consumer segments. This section refers to the first step of the S-T-P model.

Segmenting can be referred to as a process of segregating the market on the basis of different variables.<ref>{{Cite web|last=Alter|first=Tom|date=June 14, 2018|title=What is STP model in Marketing?|url=https://www.makemyassignments.com/blog/what-is-the-stp-model-in-marketing/|url-status=live|access-date=November 22, 2021|website=Make My Assignments}}</ref> However, segmenting a market has widely been debated over the years as researchers have argued over what variables to consider when dividing the market. Approaches through social, economic and individual factors, such as brand loyalty, have been considered<ref>{{Cite book|title = Marketing, Planning and Strategy|last = Jain|first = S C|publisher = South-Western Publishing Co.|year = 1993|___location = Cincinnati, OH, United States}}</ref> along with the more widely recognized geographic, psychographics, demographic and behavioral variables proposed by Philip Kotler.<ref>{{Cite book|title = Marketing Management Analysis, Planning, Implementation, and Control|last = Kotler|first = Philip|publisher = Prentice Hall International|year = 1997|___location = New Jersey}}</ref> Since a single product offered by a firm cannot satisfy the needs of all of the consumers, segmenting a market therefore, is a process of ''organising'' the market into groups that a business can gain a competitive advantage in and satisfy its needs. They must, however, avoid over-fragmenting the market as the diversity can make it difficult to profitably serve the smaller markets.<ref name=":1">{{Cite book|title = Business to Business Marketing|last1 = Vitale|first1 = Robert|last2 = Giglierano|first2 = Joseph|publisher = South-Western publishing|year = 2002|___location = Mason, Ohio}}</ref> The characteristics marketers are looking for are measurability, accessibility, sustainability and actionability.

* Measurability – The understanding of size, purchasing characteristics and value needs of a particular segment

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{{See|Positioning (marketing)}}

Positioning is the final stage in the 'STP' process and focuses on how the customer ultimately views your product or service in comparison to your competitors and is important in gaining a competitive advantage in the market.<ref name=":3" /> Therefore, customer perceptions have a huge impact on the brands positioning in the market. There are three types of positioning that are key in positioning the brand to a competitive advantage; these are functional positioning, symbolic positioning, and experiential positioning.<ref name=":3" /> Functional Positioning is focused on the aspects of the products or services that can fulfill consumers' needs or desires. Symbolic Positioning is based on the characteristics of the brand that fulfill customers' self-esteem. Experiential positioning is based around the characteristics of the brands that stimulate the sensory or emotional connection with the customers. A combination of the three is key to positioning the brand at a competitive advantage to its immediate competition.<ref name=":1" /> Overall, positioning should provide better value than competitors and communicate this differentiation in an effective way to the consumer.<ref>{{Cite book|title = Kotler on Marketing: How to create, win and dominate markets|last = Kotler|first = Philip|publisher = The Free Press|year = 1999|___location = New York, United States}}</ref>

== B2C and B2BPersona ==

{{See|Persona (user experience)}}

In marketing, the outcome of the STP process is a semi-fictional representation of a typical customer or user in each segment, often referred to as a "persona."<ref>{{Cite journal |last=Syrjälä |first=Henna |last2=Ruiz |first2=Carlos Diaz |last3=Leipämaa-Leskinen |first3=Hanna |last4=Luomala |first4=Harri T. |date=2025-05-01 |title=From consumers to consumption: The socio-technical assemblage of the persona in market segmentation |url=https://linkinghub.elsevier.com/retrieve/pii/S0148296325002103 |journal=Journal of Business Research |volume=194 |pages=115387 |doi=10.1016/j.jbusres.2025.115387 |issn=0148-2963|doi-access=free }}</ref> The persona represents the most common traits and characteristics of the segment and help marketers communicate relevant market segments more effectively by humanizing data into relatable profiles.

== The STP framework in B2B ==

{{See|Industrial market segmentation}}

The STP process describedcan above canalso be used for both business-to-customer as well as business-to-business marketing. Although most variables used in segmenting the market are based on customer characteristics, business characteristics can be described using the variables which are not depending on the type of buyer.<ref>{{Cite journal|last1=Mora Cortez|first1=Roberto|last2=Højbjerg Clarke|first2=Ann|last3=Freytag|first3=Per Vagn|date=2021-03-01|title=B2B market segmentation: A systematic review and research agenda|url=https://www.sciencedirect.com/science/article/pii/S0148296320309073|journal=Journal of Business Research|language=en|volume=126|pages=415–428|doi=10.1016/j.jbusres.2020.12.070|s2cid=233840095 |issn=0148-2963}}</ref> There are however methods for creating a positioning statement for both [[B2c|B2C]] and B2B segments. One of these methods is [[MIPS:B2B a method for managing industrial positioning strategiesMarketing|B2B]] bymarketing. Muhlbacher, Dreher and Gabriel-Ritter (1994).

== See also ==

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* [[Commercial planning]]

* [[Competitor analysis]]

* [[Customer evaluation matrix]]

* [[Market research]]

* [[Market segmentation]]

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==References==

{{Reflist}}

== External links ==

* [http://www.themanager.org www.themanager.org ]

* [http://www.b2b-marketing.org.uk B2B Marketing Org] – How to develop a positioning statement

{{DEFAULTSORT:Segmenting And Positioning}}

{{Strategic planning tools}}

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[[Category:Market segmentation]]

[[sv:Marknadssegmentering]]

[[Category:Marketing]]