STP and its importance

STP stands for Segmentation , Targeting and Positioning. STP plays an important role to get to your right customer. All three (segmentation, targeting and positioning) are tools to align your products with the right customers. 

• Segmentation : Classifying your customers on some basis like demographically, behaviour, geographically etc.
• Targeting: Marketing to a particular segment of the market/group of customers
• Positioning : Basically it means building a brand image in the mind of the customer Here are the reasons why it is important for business:

1. Segmentation splits buyers into groups with similar needs and wants to "best utilize a firm's finite resources" through buyer based marketing.
2. Attract the right customer.
3. Reduce risk in deciding where, when, how, and to whom a product will be marketed.
4. Increase marketing efficiency by directing effort specifically toward the designated segment in a manner consistent with that segment's characteristics
5. Helps in customer retention.
6. Customer delight.
7. Reduce the cost of the company by not marketing the product where its not required.