Segmentation, Targeting and Positioning (Marketing)

The STP (segmentation, targeting & positioning) model of marketing strategy is explained in this revision video.

1. STP Model Overview:
   • The video introduces the STP model in marketing, which stands for Segmentation, Targeting, and Positioning.
   • STP is a widely used strategy to help businesses make decisions in developing their marketing strategies and creating value for customers.
2. Market Segmentation:
   • Market segmentation involves identifying different parts of the market where customers share similar needs and wants.
   • Segments can vary in size and specificity, such as demographic, geographic, behavioral, or psychographic segmentation.
   • The key benefit of market segmentation is to enable businesses to focus their marketing efforts more accurately and develop products tailored to specific customer segments.
3. Targeting Strategies:
   • There are three main targeting strategies: mass marketing, differentiated targeting, and niche or concentrated marketing.
   • Mass marketing targets the entire market, while differentiated targeting focuses on specific segments with unique marketing plans for each.
   • Niche or concentrated marketing concentrates efforts on a small, specialized part of the overall market to build a strong position and maximize returns.
4. Market Positioning:
   • Market positioning involves determining how to compete effectively in the target market.
   • The value proposition, crucial to positioning, must be customer-centric, focusing on what customers perceive as valuable.
   • A positioning map helps visualize different product positions in the market based on selected dimensions like quality and price.
5. Positioning Strategies:
   • Businesses can adopt various positioning strategies, such as offering more value for a lower price, providing good quality at a low price, or offering more features for the same price.
   • The key is to understand how customers perceive value and create a competitive advantage through a compelling value proposition.

Note: The video briefly introduces each element of the STP model, with a promise to delve deeper into market segmentation, targeting, and positioning in subsequent topic videos.