What is Segmentation Targeting, and Positioning in Marketing?

Marketing is not the art of selling the same product to all. There are various individuals with diverse needs, tastes, and purchasing patterns.

This is the reason why knowledge of Segmentation Targeting and Positioning is crucial to every business organization that wishes to develop sustainably.

Companies do not spend time and money on unplanned promotions; instead, they resort to a systematic method to find the appropriate audience and make their value obvious.

The competitive business market today requires that any business that has a deep understanding of its customers will always excel compared to one that plays with guesses.

What is Segmentation Targeting and Positioning?

Segmentation, Targeting, and Positioning, also known as STP, is a strategic model of marketing that assists companies in finding their perfect customers and marketing to them most effectively.

Segmentation involves the process of breaking a large market into smaller units depending on common features. Targeting entails choosing the most desirable segment/ segments to target.

Positioning is concerned with the development of a certain brand or product image in the mind of the customer. Combined, STP assists businesses in responding to three important questions:

• Who are our customers?
• Whom are the customers to whom we should target?
• What do we wish them to think of us?

Understanding Market Segmentation

The initial step in the STP process is market segmentation, which is the most significant. There are no two customers that are alike, and segmentation assists companies in grouping similar customers.

The most popular market segmentations can be:

1. Demographic segmentation

This is informed by their age, gender, income, education, and occupation. In such a way, luxury brands tend to cater to high-income populations.

2. Geographic segmentation

In this case, the segmentation of customers is determined by the location, i.e., country, city, or climate. A clothing brand can use various products in cold and tropical areas.

3. Psychographic segmentation

This dwells upon the lifestyle, interests, values, and personality. Health-conscious individuals are usually the target audience of the fitness brands.

4. Behavioural segmentation

This category examines purchasing patterns, product consumption, and brand commitment. As an illustration, special offers can be offered to frequent buyers.

Segmentation aids businesses to have a better insight into customer needs beyond the entire market.

What is Targeting in Marketing?

Once the segmentation is done, the businesses proceed to target. Targeting involves the process of choosing a segment or several segments that have the best growth potential.

Businesses analyze segments depending on size, profitability, competition, and suitability to their business objectives.  Sometimes the common targeting strategies are:

Mass marketing, which is a type of marketing used by a business, targets everyone at the same time.

There is differentiated marketing, whereby several segments are marketed with specific messages.

Niche marketing is a marketing approach where a highly identified group of customers is targeted.

Targeting is important because it will help in expending the available marketing resources to those audiences with the highest probability of conversion.

What is Positioning in Marketing?

The last stage of the STP model is positioning, which is concerned with perception. It determines what a brand prefers to be regarded as in relation to competitors. Positioning provides the answers to such questions as:

• What makes this brand unique?
• What is the reason customers should take this product?
• What is the main advantage that the customers should keep in mind?

The positioning may be done on price, quality, innovation, convenience, or emotional value. Powerful positioning entails trust, awareness, and customer loyalty.

Difference Between Segmentation Targeting and Positioning

Segmentation Targeting and Positioning for Competitive Advantage

Segmentation targeting and positioning for competitive advantage would enable businesses to be unique in a saturated market. The brands vie on relevancy and value, rather than rivalry on price alone.

When STP is implemented properly, companies enjoy:

• Greater correspondence to customer needs.
• Increased interaction and conversion.
• Better brand differentiation.
• Reduced marketing waste

Companies that know their followers and position themselves in a clear way have more chances of long-term loyalty.

How to Do Segmentation Targeting and Positioning?

Wondering how to do segmentation targeting and positioning? Then, the following are the few steps to follow:

• Determine your market in general.
• Divide the market depending on appropriate aspects.
• Research the potential and profitability of every segment.
• Choose the target audience most appropriately.
• Create a very strong and coherent positioning statement.

This systematic approach makes the marketing activities focused, strategic, and measurable.

Conclusion

To sum up, segmentation, targeting, and positioning assist companies in obtaining the right audience with the right message.

A well-thought-out STP plan enhances brand recognition, sales, and expansion in the long term.

Wish to create a marketing strategy that works? Get in touch with us today and have our experts assist you in positioning your brand to succeed.

FAQs

1. What is the target and positioning in marketing?

It is an effective marketing strategy that assists companies in locating the groups of customers, selecting the correct audience, and positioning their brand well.

2. Why is STP important for modern businesses?

STP enhances marketing effectiveness, saves on expenses, and increases conversion rates.

3. Can startups use segmentation and targeting?

Yes, STP can be particularly helpful when a startup has a low budget and target audiences.

4. What happens if positioning is weak?

Poor positioning may disorient the customers and make the brand less credible.