The Complete Guide To STP Marketing

The Complete Guide To STP Marketing

Posted By Nitish Khanna | November 28, 2022 | No Comments | Digital Marketing
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The target audience is the end user of the products and services sold by businesses, which makes them the most significant part of the marketing cycle. In their quest to increase their sales, many entrepreneurs fail to define their audience. They think that covering a wide market will yield excellent sales.

However, selling the same product to all demographics and psychographics does not generate the desired results. The reason behind this is that customers need clarification about the offering and need to identify it as a valuable product.

The one-size-fits-all type of marketing doesn’t create any differentiation for the product or highlight its usability for the buyers. For example, a person looking for whitening toothpaste will not be satisfied with an ordinary product. They need specialised toothpaste for a specific purpose and will buy that product.

Generic products are also hard to market because of the vastness of the customers. It requires a higher budget and workforce, which often goes to waste. Thus, SEO experts in Gold Coast suggest using STP marketing which stands for Segmentation, Targeting and Positioning. Here is a complete guide on this strategy to help promote your products to the right buyers.

What is STP Marketing?

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The STP marketing model is the most successfully utilised technique to reach a designated segment of target buyers through effective communication to carve a niche in the market. It is an ideal way of attracting and engaging prospective buyers to build a loyal customer base that generates excellent profits. With the help of the STP model, business owners can identify their audience and create a dedicated marketing strategy to stand out in the crowd.

The three-step model begins with segmentation, which involves identifying segments of the audience most likely to benefit from the product and need it. Once the market is segmented, the second step is targeting them using marketing activities designed specifically for their consumption. The third step is positioning the brand in their minds with distinct characteristics to gain popularity and loyalists.

How do Businesses implement STP Marketing?

The three steps of STP marketing involve several tasks to complete each stage. Let us understand them in detail.

1. Segmentation

As the name suggests, segmentation involves dividing the massive marketplace into customer segments using categorisations based on common characteristics displayed by the group. It helps the marketer to choose the right marketing mix for the selected audience based on their similar behaviour and needs. The segments are divided using the following criteria:

Geographic Location

The business owner can choose the target audience based on their location. They can select a state, city, or suburb where they wish to sell and distribute their products. They should assess their budget and resources before determining the geographic area they wish to capture. They will need more capital for stock, marketing, distribution, and customer service if they plan to cover a state or a group of states.


Once the region is selected, they need to divide them into groups based on their characteristics, such as age, gender, occupation, socio-economic background, purchasing capacity, household income, etc. So, working women aged 25 to 35 will be separated from non-working women in the same age group. The business owners will then choose the groups which need their products and make them a part of their target audience.


The next type of segmentation is based on the personality of the buyers, such as their likes, dislikes, preferences, hobbies, lifestyle, values, etc. So, buyers who like high-end products and luxurious lifestyles will be segregated from those looking for affordable products and value for money.

Buying Behaviour

The shopping habits of the customers are also helpful in segmentation. For example, the type of products they like to use, their loyalty to other brands, etc. It helps in gauging what they want from their purchase and how they can be satisfied.

2. Targeting

After the market has been segmented, the business owner has to decide the groups he intends to target. They must be chosen after analysis of each group and whether they would be interested in the product. The budget available for marketing also plays a pivotal role in choosing the segment because the largest group would need maximum capital.

The segment selected by the entrepreneur should have a substantial population that can help accomplish sales targets. It should be distinctly identifiable and easily accessible through most marketing initiatives. It should not have any competitive barriers or other restrictions. So, the focus should be on the size of the segment, its profitability, and the ability of the business to cater to the needs of the target buyers.

3. Positioning

The last stage is to position the product in the chosen target market because you know their likes, buying behaviour, media consumption, brand loyalty levels, etc. To make an impact in the segment, you need to showcase its features and value that will resonate with the buyers and evoke a response.

Thus, you need to communicate the unique characteristics of the product effectively. It is essential to predict how the brand must be marketed to create a buzz and draw the attention of the buyers. For example, if you are targeting the high-end segment, you will need to position your brand in the premium category. The traditional and digital marketing mix should reflect luxury to grab the attention of affluent buyers.

Why Is STP Marketing Needed?

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SEO experts in Gold Coast utilise STP marketing to make the marketing efforts highly productive and rewarding. It can be applied to any industry and ensures that the marketing budget does not go to waste because of the wrong marketing platform, customer segmentation or positioning. It helps to conduct thorough market research and competitive analysis to develop a unique value proposition that helps in finding and retaining customers. All the large and small brands across the globe use this model to customise a relevant marketing message, build a solid relationship with the audience and boost conversion rates.


Creating a winning marketing strategy is not child’s play. It requires an in-depth evaluation of the market and the audience and how they can be served in the best possible manner. The idea is to build a customer-centric marketing mix that meets their needs.