Segmentation, Targeting and Positioning

STP marketing involves segmenting, targeting and positioning yourself within a market.



Segmenting the market is based upon seperating the different consumers into groups. The market can be segmented based upon many factors which adhere to 4 groups, geographic, demographic, psychographic and behavioral. Using age (demographic) as an example, the market could be split into 3 groups, children under 12, teenagers under 16 and teenagers under 19.




Targeting is choosing which segment would be the most beneficial for the company to focus on based upon segment size, growth, profitability, current and potential competitors as well as the core capabilities of the business and then selecting which segment(s) to target.



Positioning involves selecting the target market and creating and sustaining a differential advantage in relation to the competition. This involves the use of the marketing mix.



In the above advert, bounty is clearly highlighting the fact that it attracts and absorbs spills much more effectivly than the competition. This is a clear demonstration of a differential advantage being marketed effectivly.