Marketing Strategies Using Segmentation, Targeting and Positioning Model

One of the effective and reliable marketing strategy today is STP (Segmentation, Targeting, and Positioning (STP) that involves a three-stage marketing strategic process. Dave Chafey (2018) discovers that this splendid marketing model is the second most widely accepted model, only beaten by the popular SWOT/TOWs matrix.

In various cases, marketers have to create a marketing communication plan in order to prioritise propositions and then establish and provide relevant and personalised messages to grab the attention of disparate audiences (often customers). In this circumstances, the STP model plays a pivotal role.

Moreover, the STP concentrates on commercial effectiveness by choosing the most crucial segments for a company and then establishing a product strategy and marketing mix for each segment.

How STP Can be Applied to Digital Communications?

STP can be applied to digital communications by employing tactical E-mail customer segmentation approaches such as marketing personas, an efficient approach to develop customer centred communications. Since these approaches help in targeting even those customers who were not engaged previously, you need to spend a considerable budget to provide the necessary resources for their implementation. The following sections demonstrate how to target audiences:

  • Targeting via E-mail personalisation and on-site personalisation based on the profile or behaviour (e.g., content consumed).
  • Targeting through social media such as Facebook. However, it should be interest-based. For example, looking for those interested in Football, Cricket, or Gym membership.
  • Search the intent as searchers type keywords to compare products they want to buy.

In addition, various strategies can be used to make a brand more fascinating by offering new values to customers based on “Online Value Proposition.” These strategies involve the use of interactive tools or content on mobile apps or websites.

How Do I use STP?

Segmentation helps in identifying niches with particular requirements, maturing markets to look for new consumers, and delivering effective and more focused marketing messages. The following section will take a deep dive into the segmentation approach that further describes how to segment your target audiences.


People fit into say a lot about their likely buying habits, so researching this area by personal attributes such as age, marital status, gender, ethnicity, sexuality, education, household (or business), size, length of residence, type of residence or even profession/Occupation.

Continuing on with the example of a Firefox who sell 'coolest things', designed for a younger male audience. Although, Moshi Monsters, anyhow, is targeted to people in their 40s or beyond with fun, safe and educational space for the younger audiences.


Segment your target market according to attitudes, lifestyle, personality, hobbies, risk aversion, and leadership traits. The psychographic variables are used for purchasing behaviour correlate with the personality or lifestyles of consumers or to determine why your customer buys while demographics explain 'who' your buyer is. There are some different ways to achieve psychographic segmentation.

  • Interviews: Interviews help you to interact with different consumers to gather useful information about their selection. Doing so helps you offering them the products in accordance with their needs. 
  • Surveys: whether it is commercially appealing customers or online surveys, the purpose of the survey is to reach more places so that you can communicate with larger groups but it is less discerning than interviews.
  • Customer data: If you are an e-commerce business you may store data for your customer comfort, for instance, data from loyalty cards if an FMCG brand or from online purchase history. You can take this perceptive measure to grab the attention of your customers so that they can buy your products.


Behavioural segmentation is used to check the loyalty of people, how they use the product or the benefits that they are looking for.

Market targeting

This step is indispensable in marketing. Perhaps, you will not be able to pursue all the segments you have chosen. You are likely to choose the segment which is most profitable for your business. Now, you know that which segment will provide you with your best return or investment or is the most profitable. So targeting is the most important part of the marketing process.

It is not only the size of the market that should be considered to be large but also financial resources of the individuals within that segment. The segment must be reachable to your team or able to receive your messages.

Product positioning

The final stage of the process is the product positioning. In the previous step, you have picked a segment. In this step, you have to figure out ways how to set up your products in that segments. First, you have to consider what is it that allows your product to stand out rather than those of your competitors. Your product should be affordable and approachable with minimal effort. A defendable position is reliable, which means that an aggressive competitor cannot act quickly to neutralise or preempt another positioning strategy.

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