FAQs: STP in Marketing
FAQ: Segmentation, Targeting, and Positioning (STP) in Marketing
Segmentation, Targeting, and Positioning (STP) is the cornerstone of effective marketing strategy. To help demystify these concepts, we’ve compiled some frequently asked questions to provide clarity and practical insights.
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How many USPs should you promote?
The number of unique selling propositions (USPs) a company should promote varies. Historically, marketing leaders often advocated for focusing on a single USP per brand. This approach ensures consumers can easily associate the brand with a specific benefit. For example, Volvo is synonymous with “safety.”
However, a more contemporary perspective suggests positioning brands with a primary differentiator complemented by a few secondary USPs. This method allows marketers to highlight additional benefits without overwhelming consumers.
Still, the magic number depends on what your audience can retain. It’s safe to say fewer than five USPs per segment is a good rule of thumb. And remember, if you’re targeting multiple segments, you can vary your USPs for each, as long as they remain tailored and relevant.
How does brand relate to marketing positioning?
Brand and positioning are like two sides of the same coin. While positioning defines where your brand sits in the market and in consumers’ minds, your brand encompasses the personality, identity, and promise you project.
In essence, positioning is the strategic framework, and the brand is how that framework manifests emotionally and visually.
Can you provide an example of different positions within a single market?
Certainly! A classic example of diverse positioning is in the soup market, as highlighted in Principles of Marketing by Frances Brassington and Stephen Pettitt:
- Covent Garden Soups: Positioned as a dinner party starter.
- Crosse & Blackwell Soups: Marketed as a warming snack.
- Heinz Wholesoups: Framed as a meal replacement.
- Campbell’s Condensed Soups: Promoted as a recipe ingredient.
- Batchelors Cup-a-Soups: Positioned as an easy office lunch.
Even within a single product category, the possibilities for differentiation are vast.
Are there risks to segmentation?
Yes, segmentation comes with pitfalls. Here are a few to watch out for:
- Over-segmentation: Breaking down the market too finely can lead to inefficiencies and a lack of actionable differences between segments.
- Targeting unviable segments: Investing resources in segments that lack demand or profitability can drain your budget.
- Poor definition: Segments that aren’t well-defined lead to generic strategies that fail to resonate with anyone.
The key is balancing granularity with practicality, ensuring your segmentation efforts are actionable and aligned with business goals.
What happens if your positioning is wrong?
Misaligned positioning can result in products failing to resonate with target consumers. This could occur due to:
- Poor initial positioning at launch.
- Market changes, such as evolving customer preferences or advancing competition.
When this happens, repositioning becomes necessary. While repositioning can be costly, it doesn’t always mean starting from scratch. Minor tweaks—such as refreshing messaging or highlighting a new benefit—can be enough to realign with your market.
The infamous case of “New Coke” serves as a cautionary tale. Coca-Cola’s repositioning alienated loyal customers and demonstrated the risks of misjudging consumer sentiment.
Why is segmentation important?
Segmentation helps marketers understand the diverse needs, preferences, and behaviours within a broader market. By grouping customers based on shared characteristics, companies can tailor their strategies to resonate more deeply, leading to higher engagement and conversions. In short, segmentation ensures relevance.
How do you choose the right target market?
Choosing the right target market involves evaluating segments based on:
- Size and growth potential: Is the segment large and growing?
- Profitability: Can your business generate substantial returns?
- Alignment: Do the segment’s needs match your product’s features or your brand’s values?
- Feasibility: Can you reach the segment effectively with your resources?
Select segments where you can deliver unique value and outperform competitors.
What’s the difference between targeting and positioning?
- Targeting is the act of selecting specific segments to focus your marketing efforts on.
- Positioning is how you create a unique image for your brand in the minds of those targeted consumers.
Put simply, targeting decides who you market to, and positioning decides how you communicate your brand’s value to them.
What are common mistakes in STP?
Some frequent errors include:
- Over-segmentation: Breaking down markets too finely, leading to inefficiency.
- Under-segmentation: Failing to capture meaningful differences within a market.
- Targeting too broadly: Diluting your message by trying to appeal to everyone.
- Weak positioning: Offering no compelling differentiation.
- Inconsistent messaging: Misalignment between your positioning and marketing communications.
How often should companies revisit their STP strategy?
Regularly! Market dynamics, customer preferences, competition, and internal capabilities are constantly evolving. Periodically reviewing your STP strategy ensures your brand remains relevant and competitive. It also allows you to spot new opportunities or address emerging challenges.
By understanding and mastering STP, marketers can craft focused, effective strategies that resonate with their audiences and drive meaningful results. Always remember: segmentation identifies who to target, targeting selects where to focus, and positioning defines what makes your brand the best choice.
