Segmentation, Targeting, and Positioning (STP) and its Application
Modern markets are undergoing fast change and intensifying competition, which makes effective strategic planning essential to enhancing performance. However, Weinstein (2013) indicates that target marketing issues make it difficult for companies to extend their markets. The author lists a number of possible causes for the difficulty, including a lack of time, a lack of focus, and inadequate planning. According to Weinstein (2013), it’s critical to define, segment, target, and position (STP) an organization’s target market in order to increase its competitiveness. In addition, Hassan and Craft (2012) show that marketing managers must assure appropriate targeting in order to strengthen their position in the market and increase productivity and profitability. For businesses to remain relevant and increase their revenue, recent research offers insights on how to best target their market and cater to customer wants. To acquire a competitive edge and boost productivity in their industries, managers should be aware of how to employ segmentation, targeting, and positioning (STP), which suggests several marketing techniques. To target the correct market and grow their firm, the approach can be used in a variety of industries.
Targeting, positioning, and segmentation (STP)
Segmentation, targeting, and positioning (STP) are essential marketing ideas because they determine how well a product is received by its target market and how well it is introduced to the market. The STP formula, according to Kotler and Keller (2010), is where value creation in businesses starts. As a result, it is the cornerstone of strategic marketing and the foundation for the success of the sale of goods and services. As a result, Weinstein (2014) highlights the need of value-added analysis, which also includes efforts to comprehend the market and develop tailored solutions in response to consumer requests. According to the investigation, marketers should divide their target market into segments they can effectively serve rather than trying to reach the entire market.