STP Marketing guide: Maximize your campaign impact in 2024

Not everyone seeks the same things in life—especially when it comes to something as personal as fashion.

Gen Z craves sustainability and bold trends, while Millennials seek a balance of style and function. And our older generations lean toward comfort and quality.

Now, take a brand like Nike. They don’t just slap the same message on every ad.

For Gen Z, Nike promotes sustainable collections and self-expression; for older buyers, it’s all about comfort and durability. It’s not about making one product fit everyone—crafting the right message for the right group.

That’s how brands connect, build loyalty, and grow.

Every business turning into a generous brand knows which products should be marketed to whom. This blog is all about this unique approach—STP marketing.

You’ll get into the concept deeply. You will learn the steps to build an on-point STP marketing strategy and the best tactics so that your marketing drives leads that surpass your targets.

Let’s begin with the STP marketing definition.

What is STP in marketing?  

The full form of STP is Segmentation, Targeting, and Positioning, a three-step focused marketing strategy with data-packed decisions.

STP marketing enables businesses to categorize their broader target market into specific groups based on certain attributes, choose the most attractive segments, and create messages that speak directly to them.

The below image will show you the three steps of the STP marketing approach:

The STP approach in marketing ensures personalized marketing, better customer engagement, and higher conversion rates.

Why must you do STP marketing?

STP marketing can produce excellent results when done right. Below are some key points stating the importance of STP in marketing:

1. Enhances marketing relevance 

A McKinsey study found that 71% of consumers want personalized interactions, and 66% feel frustrated when they don’t.

With the STP marketing process, you target the right people with a personalized message, making your campaign a hit.

2. Optimizes resource allocation 

The STP process in marketing helps you focus your resources on the target audience segments most likely to engage or convert.

So, with STP in marketing, you can narrow down your audience and achieve a better return on investment (ROI) with minimal marketing spend.

3. Strengthens competitive differentiation 

By strategically positioning your product and service within your target market, you can define why your audience should choose you over anyone else. 

For instance, Apple is a master at brand positioning; you can see how it positions its product as all about innovation and sleek design.

4. Builds more robust customer relationships 

STP marketing helps you align your marketing message for the targeted segment of people, making them feel a stronger connection to your brand and boosting brand loyalty.

5. Adapts to a changing market 

With so many options in hand, consumer behavior shifts quickly. Still, STP marketing works as a data-driven strategy, so you can gain insights and adapt to changing market trends that always shine in your space.

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How STP marketing model works – Comprehensive framework discussion 

As already mentioned, the STP framework has three significant steps:

• Dividing the broad market into small consumer segments
• Focusing on promoting a specific audience segmentation
• Positioning products

Let’s study the STP marketing model in detail:

1. Segmentation: Breaking down your target market

The foremost step in STP marketing is segmentation, which divides a broad and diverse market into smaller, more refined groups of potential customers based on specific attributes.

For instance, an automobile company might create audience segments based on lifestyle and income and target them based on their preferences, such as one group with electric cars and another with luxury SUVs. 

These groups, or segments, are often defined by critical factors such as: 

How does segmentation work? 

The process involves analyzing and researching your target marketing based on various criteria, as discussed, and then segmenting accordingly.

Businesses can gather potential customer data through surveys, data analytics tools, and CRM (Customer Relationship Management).

The aim is to identify behavior patterns or preferences that can help create specific segments/groups for targeting.

Essential reading: Customer Segmentation 101: Everything you need to know

2. Targeting: Selecting the right segments 

Once the market is segmented, the next step is Targeting – deciding which segments are worth focusing on.

Not all segments are equally valuable, so companies use this stage to evaluate which segments/groups offer the best ROI (Return on Investment). 

For example, Starbucks effectively segments and targets people based on high-income, urban professionals looking for a premium coffee experience, and it caters to health-conscious individuals through its product lines. 

Below are the core factors that businesses judge when deciding on targeting:

• Market size: Is the segmented group large enough to justify focused marketing efforts and drive significant business growth? 
• Profitability: Will the segment generate substantial profit? Or precisely, does the segment include prospects with high disposable income or strong purchasing power? 
• Accessibility: Can the company easily reach this segment with the existing distribution and marketing channels? 
• Competitiveness: Is the segment underserved, or is it crowded with competitors?

Judging your segmented group based on the above criteria will help you pick the right market segment.

How do you do effective targeting?

There are four typical kinds of targeting strategies that businesses go for after their segmentation:

• Differentiated marketing involves creating personalized marketing campaigns for different segments customized to each group. 
• Concentrated marketing focuses on one niche segment, an approach quite famous among startups or smaller businesses. 
• Micromarketing involves hyper-targeted marketing efforts, even down to the individual level, such as personalized email or social media messages.

In-depth resource: Account-based marketing guide: Everything you need to know 

3. Positioning: Crafting the message 

This step is about defining why and how your product/service differs from your competitors and determining the best option in the minds of your chosen segments. 

For instance, nowadays, the trend indicates the growth of the US Electric Vehicle (EV) market due to environmental concerns and government support for clean energy.

So, for brands wanting to leverage this market space, they must position themselves based on two key factors: Price and Sustainability. This helps them stand out and attract the right customers.

Use a product positioning map, a powerful tool for visualizing the competitive land space and identifying market opportunities to position.

It is a great tool to identify gaps in your target market and opportunities to stand out.

Below, we have discussed an example of how an automobile company can discover the untapped market for brand positioning:

Note that the chart doesn’t exactly reflect the real value positioning of cars in the market; it simply showcases how a product positioning map can help you evaluate your business’s current standing in the market and find growth opportunities.

How do you do the strategic positioning?

To position your product in a justified manner, ask yourself why this audience should choose your product over a competitor’s.  

A good brand value proposition clarifies the product’s benefits and why it’s a better solution than the alternatives. 

There are some strategic positioning strategies that top brands adopt; let’s discuss them:

• Cost leadership: It involves positioning the product as the most cost-effective option (E.g., Walmart’s “Everyday Low Prices”). 
• Differentiation: It’s about highlighting the unique features or superior quality of your product/service that justify a higher price (e.g., Apple positioning its products as premium and innovative). 
• Niche market positioning: It is when you promote your product/service for a specific segment with specialized needs, such as luxury or environmentally conscious consumers.

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3 Successful STP marketing campaign examples  

Let’s discuss the examples of these famous brands and understand how they have strategically implemented the STP marketing model and ruled their space.

1. Apple’s iPhone launch campaign

Apple’s case study is a significant STP marketing example to draw inspiration from.

Apple used the STP model to focus its marketing around innovation:

• Segmentation: The brand targets tech-savvy early adopters who love high-end technology gadgets.
• Targeting: Apple targets two groups: Early adopters who desire the latest tech and tech-savvy users who appreciate simplicity and design.
• Positioning: It introduced the iPhone as a premium, easy-to-use product with avant-garde technology, underlining innovation and user experience.

The result: The iPhone is now a global sensation, and everyone wanted one for once in life, making Apple one of the most influential brands.

2. Coca-Cola’s Diet Coke and Coke Zero campaign 

Coca-Cola uses STP to expand its portfolio of soft drinks to capture distinct market segments effectively.

• Segmentation: The company segmented the beverage market as health-conscious consumers seeking low-calorie drinks.
• Targeting: They focused on two main groups:
• Diet Coke: Focused on older people who are health-conscious consumers, like women, who were looking to reduce their sugar intake. 
• Coke Zero: Targeted younger, fitness-oriented males who desired the taste of regular Coke with no calories. 
• Positioning: Diet Coke was marketed for those seeking a healthier option, while Coke Zero was for men who wanted the same taste as regular Coke but without the calories.

The result: The campaign successfully appealed to both chosen segments, resulting in sales conversions and building customer loyalty.

3. Nike’s “Just Do It” marketing campaign 

Nike used psychographic segmentation to connect with fitness-driven consumers:

• Segmentation: The campaign focuses on individuals who value sports, fitness, and personal growth.
• Targeting: The campaign called for professional athletes and everyday fitness enthusiasts motivated by personal achievement.
• Positioning: Nike smartly positioned itself as a brand that encourages pushing boundaries and overcoming challenges, with the famous “Just Do It” slogan inspiring motivation and empowerment.

The result: This iconic campaign succeeded in connecting with its target segments and became one of history’s most successful marketing efforts.

Let’s move to discuss how to use STP in marketing successfully.

How to develop a successful STP marketing strategy? 

To successfully implement the STP marketing model, leading businesses follow a structured approach as discussed below:

1. Conduct market research 

Thorough research of the target market is the basis of any marketing success. Thus, the first step in an STP marketing strategy is to determine its diversity and possible attractive segments.

Market research platforms like Google Analytics, Survey Monkey, Brandwatch, and Nielsen are the best to leverage here.

You can do your survey on two groups majorly –

• Qualitative research: Getting insights from surveys, focus groups, and relevant podcasts for understanding your target consumer preferences, pain points, and needs. 
• Quantitative research: Using Analytics tools to study behavioral patterns, purchase trends, and engagement levels of your target segments.

Further, your research should evaluate the TAM, SAM, and SOM to understand your market potential and scalability.

• Total Available Market (TAM),
• Serviceable Available Market (SAM)
• Serviceable Obtainable Market (SOM)

Well-established businesses trying to launch new products or services can leverage their past CRM data to gain insight into their existing customers and potential market segments.

You must explore demographics, purchasing behavior, psychographic profiles, and emerging market trends for effective market segmentation. 

2. Select key market segments 

Once you have collected all the data about your potential target market, you can segment them based on various criteria, as discussed in the segmentation step.

For instance, an outdoor gear company can segment its potential buyers into “frequent travelers,” “weekend adventurers,” and “casual buyers.” Further, it might prefer to target the “frequent travelers” segment due to its high spending potential and consistent product demand. 

According to a DemandGen study, segmented campaigns get 14.31% more opens and double the clicks compared to non-segmented ones.

The goal here is not just to identify attractive segments but also to prioritize them. Thus, in the end, you must have profitable segments that are more likely to convert and boost your revenue.

Use business intelligence and analytics technology to refine your accessible segments further into more defined groups.

Highly recommended resource: 50+ Best Marketing and Sales Tools (Apps) In 2024

3. Tailor your marketing message 

The third step of the STP marketing strategy is discovering your value proposition and crafting a personalized message that addresses each segment’s specific needs and reflects your unique value proposition. 

• Personalization makes your message relevant and speaks directly to your target group.
• The value proposition helps to highlight what differentiates your product and why it’s the best solution for your prospects’ needs. 

Here’s an STP in marketing example to understand:

A fitness brand targeting busy professionals could emphasize quick and efficient workout programs that fit their hectic schedules.

At the same time, a messaging campaign for fitness enthusiasts might focus on advanced training gear for intense workouts. 

By crafting a personalized message, you lift your positioning strategy and strengthen your emotional connection with each customer segment, boosting engagement. 

4. Design the marketing mix 

Just like the perfect combination of ingredients creates a delicious dish, the right marketing mix can help your business thrive.

The 4Ps of marketing mix consist of:

• Product: Adapt features or packaging to match the needs of each customer segment.
• Price: Set pricing that reflects your audience’s buying power.
• Place: Make sure your product is easily accessible online or in stores.
• Promotion: Use the best channels—social media, email, ads—where your audience engages most.

The right marketing mix in your STP aligns the product, pricing, and distribution strategy with the audience’s specific preferences. 

For instance, a software company could offer subscription pricing for small businesses and enterprise-level pricing for large corporations, tailoring each group’s product features and support services. 

From our latest reads: AI marketing – Transforming customer engagement and ROI 

5. Launch targeted campaigns 

This part of the STP marketing strategy is about executing your planning. Now you have the right audience segment, discovered the ideal market position, and crafted the personalized message.

So, implement your strategy through customized campaigns across platforms like Google Ads, Facebook, and email marketing.

Ensure each campaign speaks to the targeted audience, using the messaging and positioning developed earlier.

Insightful read: AI for marketing automation: Revolutionize your strategy in 2024 

6. Measure and optimize performance 

After launching your campaigns, you must monitor your campaigns with metrics like:

• Conversion rates: How many leads are converting into customers? 
• Customer acquisition cost (CAC): How much are you spending to acquire each customer? 
• Return on investment (ROI): Are the campaigns generating a healthy return compared to the costs involved? 

Based on these metrics, optimize campaigns by testing different ad creatives, adjusting budgets, or reallocating resources to the highest-performing channels. 

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Enhance your STP marketing strategy with Salesmate CRM! 

With Salesmate CRM software, you can successfully plan your STP marketing campaigns. The platform auto-enriches customer profiles, giving detailed insights into your lead data based on demographics and engagement behavior. This allows for more informed audience segmentation.

The lead scoring and customizable sales pipelines enable precise targeting of high-value prospects, allowing marketing efforts to focus on the most high-value customer segments.

The automation tools enable businesses to send personalized communication—emails, SMS, and more—tailored to each segment’s needs. This strengthens your brand’s positioning, builds relationships, and boosts conversions.

Here are some top features loved by our users:

• Lead Generation CRM: Find and capture high-quality leads to target with personalized campaigns.
• Lead Scoring Software: To prioritize the best leads for business based on engagement and value.
• Campaigns: Run targeted, effective campaigns across channels.
• Email Campaign Software: Automate and personalize your target emails for each segment.
• Sandy AI: The AI-enabled assistant writes emails, summarizes call summaries, and schedules meetings.
• Automation: Streamline tasks and workflows.
• Omnichannel Communication: Engage your prospects across multiple platforms – email, SMS, and phone.
• Pipeline Management Software: Visualize your sales cycle and don’t miss any opportunity in your way.
• Sales Goals Tracking: Set, track, and quickly meet your sales goals.
• Analytics: Measure your marketing campaign performance and make informed decisions for improved ROI.
• Mobile CRM: Manage leads and campaigns on the go.
• Ticketing Software: Take your customer support to the highest satisfaction level and build brand loyalty.

Salesmate CRM is serving businesses as a comprehensive solution to target high-value accounts.

Wrap up  

A strong STP marketing strategy helps you connect more meaningfully with your audience. By segmenting your market, targeting the right groups, and effectively positioning your brand, you ensure your efforts are focused where they’ll matter most.

When you focus on understanding and delivering what your audience needs, your marketing becomes more efficient, impactful, and sustainable for long-term growth—this is what STP marketing helps with.

Also, overcome your marketing challenges, such as dynamic markets and complex positioning, to attain a high ROI.

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