STP Framework in Marketing | Segmentation Targeting and Positioning | Marketing Fundamentals | #12

Summary

The video script delves into the successful implementation of the STP framework, which stands for Segmentation, Targeting, and Positioning in marketing strategies. It emphasizes the importance of dividing the market into distinct groups (Segmentation), focusing marketing efforts on specific customer groups (Targeting), and creating a unique image for a product in the minds of consumers (Positioning). The script provides practical examples, such as Maruti Suzuki's approach to targeting different income segments with various car models, and explains the process of identifying and analyzing segments to build a strong marketing strategy.

Takeaways

• 📈 The STP (Segmentation, Targeting, and Positioning) framework is essential for successful marketing strategies.
• 🔍 Segmentation involves dividing the market into distinct groups of customers based on various criteria like demographics, geography, and behavior.
• 🎯 Targeting is about identifying which segment to focus marketing efforts on, based on the product's USP and the target audience's characteristics.
• 🏷 Positioning is about how a product is perceived in the minds of the target audience, and it requires a clear understanding of the product's attributes and benefits.
• 👥 Demographic segmentation considers factors like age, income, personality, lifestyle, and interests to create customer groups.
• 📊 Behavioral segmentation is based on how customers behave towards a product, including their usage rates, loyalty, and how they respond to marketing.
• 📈 Income-based segmentation is a powerful example where products are tailored to different income groups, as demonstrated by Maruti Suzuki's strategy.
• 🏢 Targeting should consider major factors like accessibility, stability, and actionability to ensure the segment is viable for long-term marketing efforts.
• 🤝 Positioning strategies can vary based on price, quality, unique features, and competitors' positioning to appeal to the selected audience.
• 🔑 Understanding the gap in the market (market gap) can provide opportunities for positioning products that fulfill unmet needs within a specific segment.
• 🛠 The STP framework is not just theoretical but can be practically implemented using tools like Google Sheets, Excel, and pen and paper for analysis.

Q & A

What is the STP framework discussed in the video script?

The STP framework stands for Segmentation, Targeting, and Positioning. It is a marketing strategy used to divide a market into distinct groups of consumers based on common characteristics, target specific segments, and position products uniquely in the market.

What does Segmentation mean in the context of marketing?

Segmentation refers to the process of dividing the market into distinct groups of customers who share similar needs or characteristics, which can be used to focus marketing efforts more effectively.

How is Targeting defined in the script?

Targeting is the process of selecting the most attractive market segments to focus marketing efforts on, based on an analysis of the segments created through the segmentation process.

What is Positioning in marketing?

Positioning is the strategy of creating a unique image or identity for a product in the minds of the target market, to differentiate it from competitors and make it more appealing.

Why is it important to segment the market before targeting specific groups?

Segmenting the market helps to identify which groups of consumers are most likely to be interested in a product or service, allowing for more focused and effective marketing efforts on the right audience.

What are some common bases for market segmentation?

Common bases for market segmentation include demographic factors such as age, gender, income, and lifestyle, as well as geographic and psychographic factors like values, attitudes, and interests.

Can you give an example of how income segmentation is used by Maruti Suzuki in their marketing strategy?

Maruti Suzuki uses income segmentation to target different customer groups with different car models. For example, they offer various options for customers with lower incomes, moderate incomes, and higher incomes, ensuring that their product range caters to a wide range of economic capabilities.

What factors should be considered when deciding which market segment to target?

Factors to consider when deciding which market segment to target include the size of the segment, accessibility, sustainability, and whether the segment is profitable and aligns with the business goals.

How can a company ensure that its marketing efforts are aligned with the STP framework?

A company can ensure alignment with the STP framework by conducting thorough market research to identify and understand different segments, selecting the most promising segments to target, and developing marketing messages and strategies that resonate with those segments.

What is the significance of positioning in creating a competitive advantage for a product?

Positioning is significant in creating a competitive advantage because it helps a product stand out in the minds of consumers. By clearly communicating the unique attributes and benefits of a product, a company can differentiate it from competitors and appeal to the specific needs and preferences of the target market.

Can you explain the concept of 'gaps in the market' as mentioned in the script?

Gaps in the market refer to areas or segments that are not being effectively served or addressed by existing products or services. Identifying these gaps can provide opportunities for companies to position their products to fill those voids and meet unmet customer needs.