Use of segmentation, targeting and positioning (STP MODEL)

STP marketing or STP model in marketing comprises three steps in market segmentation - segmentation, targeting and positioning - first segmentation, second targeting and third positioning (STP). The various approaches from segmentation are discussed - mass marketing, segmented approach and niche marketing. In describing the uses of STP model in business and marketing, market segmentation examples are provided.

In this video Dr. Catherine Ngahu talks about how to increase market share and profitability using the STP model of Market Segmentation, Targeting & Positioning. This video covers how to select market segments to serve, and how to start segmentation with low hanging fruits. it covers benefits of segmentation such as segmentation and competitiveness, segmentation and profitability, segmentation and targeting and segmentation and positioning.

These strategies or phases of segmentation, targeting and positioning help in identification of the best ways to serve your customers, how to win their perceptions and be more acceptable, and in turn gain high customer appeal and profits.

This video covers how perception is reality in positioning, and the use of perceptual map in positioning. It provides real world marketplace examples that are easy to comprehend and use in various fields of economic activity and family settings.

This video covers the 3 phases in detail-

Phase 1 what, why, and How to segment a market into groups plus the benefits

Phase 2 What why and How to select segments to serve - from undifferentiated, to differentiated and niche marketing as well as the reasoning behind each choice.

Phase 3 what, why and How to position your products to win customers and gain competitive advantage. It’s perception based. A battle for the mind.

00:00 Market share and segmentation
01:44 3 steps in market segmentation
02:19 Step 1: Segmentation in STP
05:06 Step 2: Targeting in STP
06:01 Mass marketing strategy
06:16 Segmented approach to marketing
06:35 Niche marketing strategy
07:08 Selecting market segments to serve
07:32 Start segmentation with the low hanging fruits
08:23 Step 3: Positioning in marketing
09:05 Perception is reality in positioning
10:14 Perceptual map in positioning