Application of Segmentation, Targeting, and Positioning (STP) Model

This report examines the application of the Segmentation, Targeting, and Positioning (STP) model to Minnesota Micromotors Inc. (MM), a manufacturer of direct and brushless motors used in orthopedic medical instruments. The report begins by defining the STP model, emphasizing its role in identifying segmented markets and creating targeted marketing approaches. It then applies this model to MM, detailing the company's segmentation strategy which focuses on orthopedic users, specifically doctors and surgeons. The targeting strategy focuses on niche markets that allow the company to distinguish itself from competitors. The report also analyzes the positioning of MM, which is focused on delivering high-performance motors with benefits such as less noise, long-lasting, reliability, efficiency, and brush-free erosion. The report highlights how MM considers multiple segments, including those focused on high sales support for customization, high thermal resistance performance, motor performance, and price responsiveness, showing that all segments are equally important. The report also mentions how customer needs and expectations evolve over time, and how the close relationships between customers and MM participants help the company to strengthen its main business.

Student’s Last Name1
Management Game
By (Name)
Course
Professor
University
Date

Student’s Last Name2
Segmentation, Targeting, and Positioning (STP) is a common model used to create
marketing approaches. In the case where the marketing approach depends on the whole mass
market, the company may fall. In describing the three steps model differently, segmentation
entails recognizing markets which are segmented and creating new profiles. Targeting is a
procedure which involves recognizing segments which are attractive especially which are
profitable for the organization (Khan, 2013 pp.56). Finally, positioning focuses on the entire
business where the competitive advantage is assessed to determine the position by evaluating the
minds of customers. The STP model is beneficial since it provides the businesses with an
opportunity to find customers with similar needs and wants. Additionally, businesses may use
the STP model to create communication strategies since the marketers need to focus on
propositions, create and deliver messages which are personalized and relevant to associate with
the various audiences.
In applying the STP model to Minnesota Micromotors Inc. (MM), it is leading in the
manufacture of direct and brushless motors which are employed in orthopedic medical
instruments. Minnesota Micromotors Inc. is dedicated to delivering high performance in the
basis thermal resistance appliances as well as in the ratio of power to size. Therefore, MM offers
various benefits such as less noise, long-lasting, reliable, efficient, and brush free erosion which
minimize the electromagnetic interferences (Venter, Wright and Dibb, 2015 pp.78). To start
with, through segmentation, MM strengthens and expands the market. Targeting allows the MM
to reach customers to provide the functionality and features. Finally, the positioning allows MM
to analyze the customers’ needs and also set standards and goals on how to provide value motors.

Student’s Last Name3
The MM’s target customers were the orthopedic users especially the doctors. The MM’S
tools can be sued in trauma and bone surgery since they are orthopedic medical instruments
(Wirtz and Lovelock, 2017 pp.10). MM considers niche market which allows it to distinguish
from the competition. It targets the audience who wishes to pay a high premium for the business
performance (Schlegelmilch, 2016 pp.68). Also, customers in the largest segment are targeted
since they allow the business grow through training and product development.
Yes, to MM all the segments are equally attractive though they have different
importance. For instance, segment A focuses on high positions of the support sales for
customization. Segment B focuses on high thermal resistance performance on the basis of the
sales knowledge. Segment C is least price responsive but it is needed for motor performance in
the ratio of power to size. Finally, segment D is the most price responsive and it is allocated to
the interested individuals at economical rates. Therefore, the segmentation is equally attractive
since it studies customers and the buyer behavior for the effectiveness of MM.
The customers’ needs and expectations evolve over time since they have enhanced close
relationships with MM. Additionally, close associations between the customers and the MM
participants such as sales representatives, engineers, and procurement are evident. Therefore, the
customer relationships provide MM with the opportunity to expand and strengthen the main
business.

Student’s Last Name4
Bibliography
Khan, T., 2013. STP strategy for New Product Launch-a Work in Progress. International Journal
of Business and Management Invention, 2(3), pp.56-65.
Schlegelmilch, B.B., 2016. Segmenting Targeting and Positioning in Global Markets. In Global
Marketing Strategy(pp. 63-82). Springer, Cham.
Venter, P., Wright, A. and Dibb, S., 2015. Performing market segmentation: a performative
perspective. Journal of Marketing Management, 31(1-2), pp.62-83.
Wirtz, J. and Lovelock, C., 2017. Positioning Services in Competitive Markets. World Scientific.