The complete STP process
- First step: define the market.
- Step Two: Create Market Segments.
- Third step: evaluate the feasibility of the segments.
- Fourth step: create segment profiles.
- Step Five: Evaluate the attractiveness of each segment.
- Step Six: Select the target market or markets.
- Seventh step: develop a positioning strategy.
Market segmentation phases
- Identify the target market. The first and most important step is to identify the target market.
- Map the expectations of the target group.
- Create subgroups.
- Consider the needs of your target audience.
- Name your market segment.
- Marketing strategies.
- Watch the behavior.
- Size of the target market.
The first step in the segmentation, targeting and positioning process is to clearly identify the business strategy and objectives to ensure that the segmentation process supports those objectives.
Definition: positioning process The positioning process is the continuous and iterative process that companies go through to ensure a strong, positive and stable positioning in the minds of consumers. The positioning process allows companies to determine the positioning of a brand, product or service.
The first step in creating market segments is to clearly define the relevant market. As explained in the Markets, Sub Markets and Product Markets sections, it is important not to define a market too broadly.
- Measurable. Segment sizes, purchasing power and profiles can be measured.
- Available. Market segments need to be reached and served effectively.
- Remarkable. The market segments are large or profitable enough to function.
The four types of market segmentation
Types of market segmentation
Approaches to divide a market or population into segments with similarly defined characteristics. The five main segmentation strategies are (1) behavioral segmentation, (2) utility segmentation, (3) demographic segmentation, (4) geographic segmentation, and (5) psychographic segmentation.
You can gauge the market potential of a segment by looking at the number of potential customers in the segment, their income, and the number of people in the segment who need the type of product you are offering.
The importance of market segmentation is that it allows a business to reach a consumer with specific needs and wants. In the long run, this benefits the business as it can use business resources more efficiently and make better strategic marketing decisions.
Product positioning is an important part of a marketing plan. Product positioning is the process used by marketers to decide how best to convey product features to target customers based on customer needs, competitive pressures, available communication channels, and key messages.
A positioning strategy is when a company selects one or two key areas to focus on and excel in those areas. An effective positioning strategy focuses on the organization’s strengths and weaknesses, customer needs, and position in the market and competition.
A positioning statement is an expression of how a particular product, service or brand satisfies a particular consumer need in a way that competitors cannot. Positioning is the process of identifying a suitable market niche for a product (or service or brand) and establishing it in this area.
Types of positioning strategies
7-Step Brand Positioning Strategy Process
Let’s see how to do it quickly and easily:
Positioning refers to the place a brand occupies in the minds of customers and how it differs from competing products. Positioning primarily affects the place a brand occupies in the consciousness of the target group. Positioning is a common activity or marketing strategy today.