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 framework that implements [[market segmentation]].<ref>{{Cite journal |last=Dibb |first=Sally |date=1998-01-01 |title=Market segmentation: strategies for success |url=https://doi.org/10.1108/02634509810244390 |journal=Marketing Intelligence & Planning |volume=16 |issue=7 |pages=394–406 |doi=10.1108/02634509810244390 |issn=0263-4503|url-access=subscription }}</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=":5" /> The S-T-P framework implements market segmentation in three steps:

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

* ''Targeting'' identifies the most attractive segments, 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>

== Segmenting ==

{{See|Market analysis|Market segmentation}}

Whereas [[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 |last1=Beane |first1=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> ''segmentation,'' in the S-T-P framework, means classifying consumers into categories. Therefore, segmentation has two meanings:<ref name=":6">{{Cite journal |last1=Diaz Ruiz |first1=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.

Whereas [[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 |last1=Beane |first1=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> ''segmentation,'' in the S-T-P framework, means classifying consumers into categories. Therefore, segmentation has two meanings:<ref name=":6">{{Cite journal |last1=Diaz Ruiz |first1=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}}</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/|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.

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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>

== Persona ==

{{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.

== B2CThe andSTP 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 methods for creating a positioning statement for both [[B2c|B2C]] and [[B2B Marketing|B2B]] marketing.

== See also ==

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* [[Commercial planning]]

* [[Competitor analysis]]

* [[Customer evaluation matrix]]

* [[Market research]]

* [[Market segmentation]]