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Topic Videos

Segmentation, Targeting and Positioning (Marketing)

AS, A-Level
AQA, Edexcel, OCR, IB, Eduqas, WJEC

Last updated 12 Nov 2023

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

Marketing: Segmentation - Targeting - Positioning
  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.

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