The segmentation, targeting, and positioning (STP) model is a three-step approach to marketing. Many marketers use the STP model for boosting conversions and revenue.
How does it work anyway? Let’s learn more about the STP model for digital marketing here.
WHAT IS THE SEGMENTATION, TARGETING, AND POSITIONING MODEL
The STP model is a modern approach to marketing that focuses on the audience rather than the product. The goal is to deliver relevant messages to specific audiences. To do so, you need to segment your market and make a digital marketing campaign in Singapore tailored to your target audience’s preferences.
You can break down your target audience into smaller groups, which allows you to develop specific digital marketing strategies based on different expectations and preferences. The process begins with three simple steps.
3 SIMPLE STEPS OF THE STP APPROACH
The first step of the STP model is to divide your target audience into separate groups based on specific criteria. There are four types of market segmentation:
Demographic segmentation is all about knowing “who” your target audience is by identifying specific traits, such as age, gender, profession, and ethnicity.
You will segment your target audience into different groups based on the mentioned traits. In doing so, you can personalise your digital marketing strategies individually for separate groups.
For psychographic segmentation, the goal is to understand “why” your customers might be interested in your products or services, depending on their personality, hobbies, values, and beliefs.
This step of the STP model is probably the most challenging since you will need to identify each consumer with in-depth research. It requires you to analyse different personalities and see how they affect your marketing.
However, the rewards are worth achieving. Once you understand your customers on a deeper and more personal level, you can deliver the right message and create content specifically for them.
Compared to the other types of market segmentation, geographic segmentation is the easiest. All you have to do is identify and group consumers based on “where” they are currently residing. To do so, you can define your target market’s segments by knowing their country, region, and city.
Behavioural segmentation tackles “how” your customers interact with your business. Vital factors to consider for this type of market segmentation include browsing habits, purchasing decisions, brand loyalty, and product reviews.
For instance, by distinguishing first-time website visitors from those who have already visited your website before, you can personalise the customer’s experience more effectively.
First-time visitors: “Welcome, newcomer! Here’s our collection of products just for you.”
Previous visitors: “Welcome back, friend! Earn rewards by buying more products.”
Notice the difference between the two messages. One is for first-time visitors who might want to know more about your business, while the other is for loyal customers who are more likely to buy again. Gather behavioural data to personalise each visitor’s experience and increase their chances of making a purchase.
The second step of STP marketing is targeting, which requires you to focus on a segmented audience that might generate the most desired conversions and results.
After segmenting your target market, you will need to target a specific group with the highest profitability. There are three essential factors to consider: size, profitability, and reachability.
Size refers to the largeness of a segment, while profitability is the segment that is willing to spend the most money on your products or services. As for reachability, it is the challenge of reaching your segmented target market through digital marketing.
It is essential to analyse each segment based on its size, profitability, and reachability. Doing so will allow you to focus on a single group and cater your brand to specific customers.
Lastly, you have positioning, the third step of the STP approach. Here, you will need to stand out from your competitors. Try to understand how customers perceive your products in comparison to other brands.
Thanks to the first and second step of the STP digital marketing model, you probably have a clear overview of your niche audience by now. To gain a competitive advantage, you have three options:
- Symbolic positioning
- Functional positioning
- Experiential positioning
First is symbolic positioning, which focuses on enhancing the customer’s self-esteem. This digital marketing strategy is perfect for the automotive industry, where purchasing luxury cars can make customers feel better about themselves.
Second, you have functional positioning. The goal of this strategy is to provide your customers with solutions to genuine problems. To do so, you can share the benefits of your products to encourage customers to purchase.
Lastly, experiential positioning is all about establishing an emotional connection with customers. Understand your customers’ needs and desires to create a unique and personalised experience just for them. Doing so should help you gain your customers’ trust, and as a result, your brand can stand out from the competition.
The STP model is a revolutionary approach to digital marketing that every business should consider implementing. Since your audience is the priority, you can promote your products or services in a way that will resonate with potential customers most effectively. By targeting customers with high profitability, the likelihood of boosting conversions and sales will increase over time.
Get in touch with a digital agency in Singapore like OOm to know more about digital marketing. Contact OOm at 6391-0930.