Comprehensive Report on the STP Model: Applications and Analysis

This report delves into the Segmentation, Targeting, and Positioning (STP) model, a fundamental marketing strategy. It begins with a theoretical and conceptual perspective, defining the core components of STP and their significance in a competitive market. The report emphasizes the importance of STP in helping organizations tailor their marketing efforts to specific customer groups, thereby enhancing customer satisfaction and profitability. The main body of the report critically evaluates the STP model, highlighting its role in creating marketing communication plans, prioritizing messages, and delivering personalized content. Furthermore, the report provides practical applications of the STP model through case studies of Pets at Home, PEPSICO, and TESCO, illustrating how each company segments its market, targets specific customer groups, and positions its brand to gain a competitive advantage. The report concludes by summarizing the importance of the STP model in today's marketing landscape, offering recommendations for its effective implementation and emphasizing its role in organizational success.

Segmentation, targeting
and positioning Report

CONTENTS
Contents...........................................................................................................................................1
INTRODUCTION...........................................................................................................................2
MAIN BODY..................................................................................................................................2
Theoretical and conceptual perspective.......................................................................................2
Application of Segmentation, targeting and positioning model..................................................4
Recommendation.........................................................................................................................6
CONCLUSION................................................................................................................................6
REFRENCES...................................................................................................................................8
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INTRODUCTION
In order to deal within the competitive market, it is very crucial for an organisation to
adopt right marketing strategies in order to make the customers available with the product or
services as per their need and want. The most commonly used marketing strategy is
Segmentation, targeting and positioning model that work while following a systematic
framework. It supports in dividing the larger market into chunks and then determining the most
appropriate customer group to target and positioning the product along them that can satisfy their
need and want. This report contains a detail description over the S-T-P process to determine its
importance by critically evaluating about it and implementing it to industry for having an idea
regarding this process in a business and role it holds within the success or failure of an
organisation.
MAIN BODY
Theoretical and conceptual perspective
S-T-P is a consider to be most essential part of marketing as it supports in determining the
group of customers to be approach and manner in which they must be approached in order to
provide most satisfactory services. It supports an organisation to develop the strategies to direct
their actions for dealing with competition present in market place. As per the view point of John
Cousins, 2018, S-T-P within marketing refers to Segmentation, targeting and positioning which
support the marketer to craft their messaging in a manner that is relevant to target the customers
and keeping them bind with the company. It mainly focuses over determining the most valuable
segments in order to create the right marketing mix and positioning the product for those
segments.
According to the information presented by Maximilian claessens, 2015, the main role of
marketing is to develop for customers and building more profitable customer relationship for
capturing value back afterward. The marketing strategy help in addressing this issue as it
provides set of marketing logic which help in creating the customers value and help in achieving
the most profitable customers relationship. According to Pyo, S., 2015, it is crucial to have an
effective marketing strategy that remain customers driven in order to create value among them.
For this it is very crucial that an organisation must firstly determine the kind of customer they
must serve and for this company must segment the market as per certain criteria which remains
relevant to company. After which the most profitable segment is being selected to serve with the
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help of targeting step and at last the company require to decide how it must serve the selected
customers which involve differentiating the products from that of other offering present within
the market and aim toward positioning the product in market as well as in the mind of customers.
On the other side as per the information presented by Annmarie Hanlon, 2019, the S-T-P
model is very much useful to an organisation while creating marketing communication plan as it
supports the marketer in prioritising prepositions and then delivering the personalised and most
appropriate messages to keep the customers engaged within the organisational affairs. This
approach is audience based instead of product focused as it helps in ensuring that the right
customers get right product as per their demand. With the help of segmentation an organisation
become able to specify a niche market having homogeneity in specific need that also help in
determining new market by delivering more focused and efficient marketing messages designed
as per customer requirement. On other hand, as per view point of Schlegelmilch, B. B., 2016,
targeting is basically refer to the process of potential and commercial attractiveness for each
segment to get most favourable one for targeting them with all the required marketing practices
for attracting them toward organisations offering. Positioning refers to the process of fixing up
the locus of product in mind of customers over a particular feature or benefit that help in
attracting them for future practices.
According to information presented by Jennifer Lombardo, 2019, The market
segmentation refers to the subgroup of people or organisations that contains one or more
homogenous characteristics that cause them to demand for similar product or services. The main
reason behind dividing the market within some identifiable group is that it supports the
marketing team in creating a marketing mix for specific group of customers. In addition to this it
is more beneficial to an organisation as it allows a particular business to precisely reach the
customers with their specific need and wants. This also support an organisation in using their
corporate resources in more effective manner while making better strategic marketing decision.
In addition to this, as per the information presented Nemanja Jovancic, 2018, the S-T-P
model is consider to be most crucial from an organisational perspective as it help them in clearly
determine the most valuable market segments in order to sell them successfully with the targeted
products. It is considered as most commonly used marketing model in todays competitive world
as in past the marketing models mainly revolve around the product but now the focus gets shifted
from the product to customers which is the main principle behind the S-T-P model of marketing.
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On the other hand, as per the information presented by the Kotler, P., Bowen, J. T., Makens, J.
and Baloglu, S., 2017, the targeting within marketing is crucial as it is considered as the part of
holistic marketing strategy. It directly influences the advertising along with the customers
experiences, business operations and branding. Therefore when an organisation focuses over the
target market segmentation the it become able to speak directly with the customers, be able to
attract and convert high quality lead, differentiate the brand and its products out of crowd, build
up deeper customers loyalty, stay focused and also support in improving the product or services
as per the requirement if customers. Hence it can be said that targeting of customers help in
building up a base through which the customers can be attracted in order to approach maximum
number of potential customers to earn higher amount of sales and profitability.
According to Camilleri, M. A., 2018, the marketing model S-T-P fuel additive is mainly
designed for increasing the fuel efficiency as well as engine performance. The S-T-P model for
performing marketing activities support in several things such as help in increasing the
marketing campaign performance in order to bring monetarily profit and also help in moving
forth by providing better return over investment. The approach is very much simpler where it
allows an organisation to divide or segment its market into some identifiable cluster for the
potential customers so that the customers can be targeted with some specific marketing
communication that are designed in a manner that the company’s offering and brands can be
stand out from that of available competitors in the market.
Application of Segmentation, targeting and positioning model
Pets At Home S-T-P
Pets At Home is the large scale pet supplies provider of United Kingdom which has
around 450 stores within UK only. All of these stores of the company are managed and operated
by 6000 employees. The respective company offers variety of products that includes food, toys,
medication, accessories, bedding and pets. S-T-P of this company is explained below in
descriptive manner:
Segmentation: In segmentation, the manager of the respective company has segmented
its customers into smaller groups. Among these groups main focus of company is on behavioural
segments. In this, behavioural segmentation, benefit segment is taken into consideration that
emphasises on gaining cost advantages by providing huge variety of products and services to
customers.
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Targeting: The respective company mainly focuses on targeting pet owners as its core
customers who will be further served by the same company so that they can attain their sales
targets in rightful manner. The overall strategy of company is developed in such a manner so that
they can easily attract pet owners towards them in rightful manner.
Positioning: In order to position value of company among pet owners, the respective
manager of the company focuses on providing services to its customers in convenience manner
for influencing their interest towards them. In this regard, they have adopted convenience online
services for customers that include various facilities like delivery to home, easy repeat food
subscription, and order in store, flea and worm subscription order online and collect at store
facilities and many others.
PEPSICO S-T-P
The main target market for PEPSICO is the consumers who prefers to buy soft drinks. In
order serve these customers in better manner the respective company ensures to distributes all the
products and services to customers in the convenience manner. For doing so in better manner,
manager of the company ensures to use effective B2B distribution channels for enhancing there
reach over general market in quicker manner. S-T-P of PEPSICO is stated below:
Segmentation: The top management team of PEPSICO mainly segmented the market
into smaller segments in order to effectively emphasise on needs and requirements of every
smaller section in appropriate manner. Under this the market is segmented on the basis of factors
like behavioural (mainly for parties or functions), psycho-graphic (upper, middle and lower
middle), demographic (age of 14-35) and geographic (urban counter reach).
Targeting: In this, the main focus of manager of PEPSICO is on targeting its customers
on the basis of age group. For targeting its customers Pepsi mainly target them through
advertisement in order to attract youth as it provide a refreshment feeling to them (Segmenting,
Targeting and Positioning, 2014). The main reason behind choosing these people as targeted age
group is their higher influence towards soft drink and its consumption at regular basis.
Positioning: In order to position their brand value among customers, the manager of the
respective company effectively makes use of rightful marketing strategy in order to positioning
themselves among customers in rightful manner. Here, the company mainly segments its
customers on demographic basis which includes segmentation on the basis of age, income,
gender etc. It can be said that manager of PEPSICO uses TV ads, newspaper, Hoarding etc. for
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marketing their products among targeted customer zone. Along with this, they often make use of
social media platform for approaching maximum number of customers towards themselves as
this platform makes it easier for individual to reach higher range of customers. They mainly
promote the product as refreshment sources by forming the advertisement that represent coolness
mainly among the youngsters to attract them.
These are the S-T-P strategy that PepsiCo mainly follows which support them in
attracting larger number of customers toward it. This support them in gaining success as it target
several segments and its reach is also very much smooth that ensure quick flow of product to
customers.
TESCO S-T-P
TESCO is one of the largest supermarkets of UK which has its operations across the
world including Jordan. The respective company is successfully reaching its customers by using
appropriate strategies that ultimately helps them out in attracting maximum number of customers
in rightful manner. S-T-P of this company is specified as below:
Segmentation: Segmentation of TESCO is mainly done on demographic basis that
includes age, gender, income, occupation, education, social status and family size.
Targeting: Among all income group of demographic segmentation has been chosen by
the manager of TESCO. In this, middle class people are mainly targeted by the company. The
main reason behind adopting this group is that offering within the supermarket of TESCO is of
affordable prices. Thus, it is easier for the respective company in attracting maximum number of
customers from middle class range. As a result, it is easier for respective company in maintaining
its sales flow with the same targeted middle class customers
Positioning: For positioning brand name of TESCO among middle class people, the
manager of TESCO make use of social media account and online mode of promotions in order to
attract maximum number of customers towards them in rightful manner.
Recommendation
On the basis of overall information developed from STP and its application in several
sectors it can be said that there are few recommendations that have been provided to the manager
of the company by which they can easily improvise their performance and attain success in
quicker manner. Some of the core recommendation provided to this company are stated as
below:
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 At first it is recommended to manager of businesses to provide regular based training
session for employees so that they can develop their knowledge on the latest technology
that is being used in marketing (Kaynak, 2014). With these training sessions, it would be
easier for employees in managing their marketing activities and achieving their sales
targets in the quicker manner.
 Along with this, at next it is advised to business manager of company to target only that
market which can be approached by them in quicker manner. Also, it is required by them
to clearly specify their targeted customers so that marketing team of the company can
easily develop their core strategies according to this only. As a result, it would be easier
for them to attain their sales objectives and company's main aim.
CONCLUSION
From the above mentioned information, it can be summarised that marketing strategies plays
a significant role within the performance of a product among the group of customers as it help
presenting the direction over which the operations get performed by an organisation. The S-T-P
model consist of step by step execution of actions toward approaching customers which is
consider to be most beneficial in term of product success. This is so because this support
determining the number of groups that demands from a particular product or services of
company and evaluating those groups to determine the most favourable that provide maximum
benefit out of minimum efforts and also support in positioning the product within market by keep
them differentiated from that of others. In addition to this it also supports in achieving
competitive edge by allowing an organisation to approach right customers with right strategy as
well as product to achieve higher satisfaction out of efforts implemented by the organisation in
market place to approach customers.
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REFRENCES
Books & Journal
Camilleri, M.A., 2018. Market segmentation, targeting and positioning. In Travel Marketing,
tourism economics and the airline product (pp. 69-83). Springer, Cham.
Kotler, P., Bowen, J.T., Makens, J. and Baloglu, S., 2017. Marketing for hospitality and tourism.
Pyo, S., 2015. Integrating tourist market segmentation, targeting, and positioning using
association rules. Information Technology & Tourism, 15(3), pp.253-281.
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.
Camilleri, M.A., 2018. Market segmentation, targeting and positioning. In Travel Marketing,
tourism economics and the airline product (pp. 69-83). Springer, Cham.
Online
Segmenting, Targeting and Positioning. 2014. [Online] Available through: <http://seemachawla-
marketingdiary.blogspot.com/2014/09/segmenting-targeting-and-positioning.html>./
Cousins. J., 2018. Learn the 3 Secrets that Every Marketing Pro Knows, But You Don’t. [Online]
Available through:<https://medium.com/swlh/S-T-P-marketing-6deb6b010b5>.
Claessens. M., 2015. The Marketing Strategy: Segmentation, Targeting, Positioning &
Differentiation. [Online] Available through:< https://marketing-insider.eu/marketing-
strategy/>.
Hanlon. A., 2019. use Segmentation, Targeting and Positioning (S-T-P) to develop marketing
strategies. [Online] Available through:<https://www.smartinsights.com/digital-
marketing-strategy/customer-segmentation-targeting/segmentation-targeting-and-
positioning/>.
Lombardo. J., 2019. Market Segmentation: Why Market Segments Are Important to Marketers
[Online] Available through:<https://study.com/academy/lesson/market-segmentation-
why-market-segments-are-important-to-marketers.html>
Nemanja Jovancic, 2018. What is S-T-P Marketing and How It Beats Traditional Marketing
[Online] Available through:<https://www.leadquizzes.com/blog/what-is-S-T-P-
marketing/>.
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