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STP and its importance

Business and Industry Services
From Armenia
To Canada
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Sep 25, 2020
What is STP? Why is it important for business?

1 answer

Andrea T.
Sep 25, 2020

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.
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