STP Analysis
STP analysis is a crucial framework in marketing strategy planning, consisting of three steps: Segmentation, Targeting, and Positioning. Each step is as follows:
Segmentation: This process involves dividing the market into specific criteria to create customer groups (segments) with homogeneous needs and characteristics. Segmentation criteria include geographic, demographic, psychographic, and behavioral factors. Examples: Age, gender, income, lifestyle, purchasing behavior.
Targeting: This step involves selecting the customer groups (segments) that the company will target from those identified in the segmentation process. Selection criteria include market size, growth potential, competitive landscape, segment profitability, and the company's strengths and resources. Example: Targeting fashion-conscious women in their 20s.
Positioning: This process determines how to position the company's products or services in the target segment. It clarifies the value to customers and differentiates the company from competitors. Successful positioning requires delivering a clear and consistent message to customers. Example: Establishing a brand image of high quality and reliability.
Specific Steps of STP Analysis
Market Segmentation: Divide the market using criteria such as geography, demographics, psychographics, and behavior. Example: Dividing the automobile market into segments like luxury cars, compact cars, and SUVs.
Target Market Selection: Analyze the size, growth potential, and competitive environment of each segment to select the most effective one for the company. Example: Determining that the luxury car segment is highly profitable and leverages the company's strengths.
Positioning Decision: Decide how the company’s products or services should be perceived in the target market. Example: Establishing the positioning as "the most innovative and reliable brand in the luxury car market."
STP analysis is an extremely important tool in marketing strategy planning and serves as a foundation for companies to build a competitive advantage in the market.