Segmentation, Targeting, and Positioning

STP, is, a, process, with, three, steps., The, order, matters.

Segmentation, breaks, a, market, into, groups, that, want, different, things., You, typically, look, at, demographics, (age,, income,, family, stage),, geography, (region,, climate,, urban, or, rural),, psychographics, (values,, lifestyle,, personality),, and, behavior, (how, often, they, buy,, loyalty,, or, purchase, triggers)., A, segment, is, useful, only, if, it, is, measurable, reachable, substantial, enough, to, serve,, and, internally, similar, but, externally, different., That, last, point, often, gets, overlooked., It’s, crucial;, without, it,, you, risk, creating, groups, that, don't, behave, differently.

Targeting, selects, which, segments, you'll, serve., An, undifferentiated, strategy, treats, the, whole, market, as, one., A, differentiated, strategy, targets, several, segments, with, tailored, offers., A, concentrated, or, niche, approach, focuses, on, one, segment,, which, is, usually, smart, for, a, small, firm., Being, the, obvious, choice, for, a, narrow, group, is, better, than, being, just, another, option, for, everyone.

Positioning, determines, how, you, want, to, be, perceived, in, the, customer's, mind, compared, to, alternatives., It’s, a, comparative, claim., Instead, of, saying, "we, are, good, quality,", say, "more, reliable, than, the, cheap, options,, less, costly, than, the, premium, ones.", A, perceptual, map, displays, competitors, on, two, axes, that, matter, to, buyers., It, reveals, whether, an, empty, space, exists, because, no, one, wants, what’s, there.