Why Do We Need STP In Marketing?

What is STP and what is its importance?

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  1. STP in marketing stands for Segmentation, Targeting and Positioning. STP are tools that play a vital role in getting your products or services to the right customers. If any one tool out of STP is used inaccurately, your marketing efforts may go in vain and the product or service offering may fail.
    Before getting into why STP is important, here is a simple explanation of what Segmentation, Targeting and Positioning mean.
    Segmentation: Segmentation means diving the population into well defined homogeneous groups on the basis of demographic, geographic, psychographic and behavioral charateristics.
    Targeting: Here we select one or multiple groups out of the customer groups created in the segmentation phase to whom we want to provide or products or services.
    Positioning: Positioning means how customer perceives your brand. It is basically brand image.

    Why do we need STP in marketing?
    1. Dividing population into customer groups enables the firm to decide which customer segments they want to cater to.
    2. Knowing the target customer segment helps us make sure that we meet customer requirements with the product or service that we are offering.
    3. You can also focus your promotions towards this particular customer segment which will make sure that conversion rates are high.
    4. Attract right customers.
    5. Your marketing costs will reduce, as you focus on the correct target market.

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