Nothing is equally valued by everyone. This is the rudimentary premise of the concept of market segmentation whose ultimate goal is efficient resource management. A one-size-fits-all marketing approach is synonymous with the wasteful strategy of distributing your resources equally across the board, even to those who are not the right fit for your products or services.

The accessibility and the low entry cost of social media make it easy for many businesses to fall into this trap. In a world where attention is the most precious currency, untargeted marketing messages evaporate in the midst of clamor and noise.

STP which stands for Segmentation, Targeting, and Positioning, is a simple but fundamental framework that helps us find the subgroups of consumers who would find the most value in what we offer as a business and therefore, have the most potential for growth.

Segmentation

The first step in the process is to sub-divide our market into subgroups based on some attributes and characteristics they have in common. The goal here is to compartmentalize the broad spectrum of potential customers in order to simplify the complexity of the market. By classifying different groups of people and collecting information about them, we can better identify our target audience and understand their wants and needs. This way, we can optimize and tailor our messaging and marketing communication strategies accordingly to attract them more efficiently. Generally, there are 4 common criteria by which you can segment your market.

Demographic Segmentation

In demographic segmentation, we use demographic variables to specify our target market. Some of these variables are age, gender, level of education, occupation, race, marital status, social status, income, religion, etc. For example, a company that manufactures toys may primarily segment its market by age and gender to craft marketing content that appeals the most to young children. On the other hand, a jewelry company may focus more on young adults of the marrying age.

Geographic Segmentation

Geographic segmentation focuses on the similar needs and wants of a group of people who share geographic boundaries such as a country, region, state, city, climate, and so on. For example, a healthcare organization in an area with large immigrant communities may consider supporting other languages in their communications or a home security company may achieve more success if it focuses on high-crime areas.

Psychographic Segmentation

In this method of segmentation, an organization divides its market into subgroups based on psychological characteristics such as lifestyle, beliefs, opinions, hobbies, political orientation, personality traits, attitudes, and everything that drives consumers’ decision-making. While demographic information helps us explain who our target customer is, psychographic information helps us explain the motivations behind their buying behavior.

Behavioral Segmentation

In behavioral segmentation, we break down the potential customers by how they behave in relation to our organization, its touchpoints, and our products or services. It’s the action that sets the groups of consumers apart, not who they are or why they behave in a certain way. The common types of behavioral segmentation are key benefits sought, spending habits, user status, customer journey, purchasing habits, and brand interaction.

Targeting

The next step is to simply decide on which of the identified segments we are going to serve. This is a pivotal decision as it’s going to determine the direction of all our marketing communication strategies. The complexity of this task is due to the fact that each identified segment may have qualities that we may want to tap into.

However, It’s the overall picture that we should concentrate on. Which of the segments can receive the most value possible from our products or services? Which one is the biggest in size or has the highest potential profitability? For existing businesses, one way to identify the target market is by looking at the current top customers who are the most valuable and loyal, and then looking for commonalities to see in which segment do they fit better.

The main benefit of targeting is that it enables us to narrow down on a specific part of the population and only worry about appealing to them. This empowers us to craft marketing messages that are relatable and relevant, two of the most important qualities that all businesses expect from professional social media marketing services.

Positioning

Whatever you choose, chances are that you are not the only company that aims at serving that particular segment of the market. You need to differentiate yourself from the competition. By positioning, you affect how your target customers perceive your brand and your products or services against other brands and offerings.

This is where it all comes together to form the language and tone you want to use, and the image you want to convey to your target audience in all. Your positioning strategy should answer the question why should a customer choose you and your product over your competitors? Are your products more high-end? Are you more luxurious? Or are you more budget-friendly? For example, in the automotive industry, each prominent manufacturer has positioned itself in a unique way to claim a specific corner of the market. Volvo has positioned itself as a leader in the field of car safety while Porsche boasts about its exclusivity. BMW claims to be the ultimate driving machine while Toyota has focused on responsibility and eco-friendliness.