Understanding “STP” Through Goldilocks

Understanding Segmentation, Targeting, and Positioning Through Goldilocks and the Three Bears

When discussing marketing strategy, the process of Segmentation, Targeting, and Positioning (STP) is central to understanding your audience and delivering tailored solutions. But how can this be explained in an engaging, memorable way?

Enter: Goldilocks and the Three Bears.

This classic tale provides an allegorical lens through which we can explore the STP framework. Let’s take a closer look.

The Marketing Made Clear Podcast

This article features content from the Marketing Made Clear podcast. You can listen along to this episode on Spotify:

Segmentation: The Three Bears as Market Segments

In the story, the three bears represent distinct consumer groups, each with unique preferences:

  • Papa Bear: The segment that values “large” or premium products. Think luxury SUVs, big-screen TVs, or products with additional features and a higher price tag.
  • Mama Bear: The middle-ground audience, seeking balance. They prefer products that offer a compromise between quality, size, and price; a reliable mid-range car, for example.
  • Baby Bear: The budget-conscious or minimalist group. They prioritise smaller, simpler, or more affordable options. Picture compact cars or no-frills gadgets.

By defining these segments, businesses can see that consumers aren’t one-size-fits-all. Each group has its own needs and expectations.

Goldilocks: The Consumer Exploring Market Offerings

Goldilocks herself symbolises the consumer’s decision-making journey. She samples everything:

  1. Porridge: Testing extremes of heat and sweetness.
  2. Chairs: Trying different sizes and comfort levels.
  3. Beds: Evaluating firmness.

Through this process, she discovers what’s “just right” for her—a metaphor for consumers navigating the marketplace to find the perfect fit.

Finding the Right Fit: The Goal of Segmentation

Goldilocks rejects options that don’t meet her preferences, highlighting a key takeaway: a one-size-fits-all approach doesn’t work in marketing. This is why segmentation exists, to understand and cater to diverse needs.

For businesses, this translates to offering differentiated products, much like the bears did with their porridge, chairs, and beds. By doing so, you can capture a wider audience while ensuring individual satisfaction.

Targeting: Reaching Your Goldilocks

Now that segments are identified, the next step is targeting, choosing which audience(s) to focus on and tailoring marketing efforts accordingly. Returning to the analogy:

 

If Goldilocks is most satisfied with Baby Bear’s offerings, it makes sense to target her with products similar to Baby Bear’s porridge, chair, and bed.

However, here’s where marketing research becomes crucial. Without understanding the preferences and behaviours of your audience, you’re essentially guessing, like blindly hoping Goldilocks will choose Baby Bear’s porridge first.

Research to Avoid Trial and Error

Trial and error might work in fairy tales, but in marketing, it’s costly. Instead, consider these data categories to build accurate customer profiles:

  1. Demographics: Age, income, gender, etc.
  2. Geographics: Where your audience lives.
  3. Psychographics: Their values, interests, and lifestyles.
  4. Behavioural Data: Purchase history, brand loyalty, and usage patterns.

For example, if you discover that consumers of Baby Bear’s porridge often buy Baby Bear’s beds, you can use predictive analytics to suggest relevant products, saving both time and resources.

Positioning: Communicating Relevance

Positioning involves ensuring your product stands out as the ideal choice for your target audience. This is achieved by aligning the product’s attributes with the consumer’s preferences. Here’s how positioning might look in the world of Goldilocks:

  • Porridge: “Craving the perfect porridge? Baby Bear’s is just right—not too hot, not too cold. Taste perfection in every bite!”
  • Chair: “Say goodbye to oversized or overly soft chairs. Baby Bear’s chair is perfectly designed for your comfort.”
  • Bed: “Sleep like Goldilocks with Baby Bear’s bed—the ultimate balance of comfort and support.”

By focusing on relevance, you ensure that your message resonates with your audience. This relevance is backed by research into what each segment values most, be it quality, price, or convenience.

From Audience Segments to Personalisation

For more advanced targeting, you can take segmentation a step further with personalisation. Modern marketing tools allow for tailored campaigns that address individual preferences. For instance:

  • Emails: Include personalised recommendations based on past purchases (e.g., “As someone who loved Baby Bear’s porridge, you might enjoy our Baby Bear bed range!”).
  • Visual Content: Adapt imagery to suit the demographic profile; young professionals, retirees, or families.
  • Ethics and Psychographics: If your audience values sustainability, emphasise that “no bears were harmed in the making of this product.”

This approach, often referred to as creating an “audience of one,” ensures that each consumer feels understood and catered to. I feel very strongly about the use of this terminology though, so please check the podcast out to hear my thoughts on that!

Beyond the Story: Practical Insights

The Goldilocks analogy also underscores a few additional points:

  1. Market Research: Use data-driven insights to predict consumer behaviour and inform segmentation, targeting, and positioning strategies.
  2. Brand Loyalty: Just as Goldilocks consistently gravitates towards Baby Bear’s offerings, a positive experience with one product can foster loyalty across the brand.
  3. Semantic Scales: Plotting product attributes on a scale (e.g., porridge temperature or chair size) can help identify gaps in the market and refine positioning efforts.
  4. Competitive Context: Positioning isn’t just about your product; it’s about how it compares to competitors. Highlight what makes you unique.

Conclusion: Putting the Goldilocks Analogy to Bed

By examining segmentation, targeting, and positioning through the lens of Goldilocks and the Three Bears, the importance of understanding and catering to diverse consumer needs becomes clear. Whether it’s porridge, chairs, or beds, success in marketing hinges on relevance, research, and a tailored approach.

So, what’s the moral of this marketing fairy tale?

To win over your Goldilocks, your products and messaging must be “just right.” Whether you’re targeting Papa Bear, Mama Bear, or Baby Bear, the key is to align your offerings with the specific preferences of each segment. And with a solid STP strategy, happily-ever-afters in marketing are entirely possible.