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Notes On STP and USP | PDF | Market Segmentation | Marketing
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Notes On STP and USP

The STP process is a marketing strategy that involves segmenting the customer base, targeting specific customer segments, and positioning products and services to meet the needs of the targeted segments. Marketers use the STP model to segment customers by attributes, determine which segments to target based on profitability and growth potential, and position brands in places where targeted customers are most likely to find them. The steps involve identifying customer segments based on factors like demographics, targeting the most profitable segments, and creating a unique selling proposition to appeal to targeted segments through targeted advertising.

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Soumya Ranjan Pradhan
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268 views2 pages

Notes On STP and USP

The STP process is a marketing strategy that involves segmenting the customer base, targeting specific customer segments, and positioning products and services to meet the needs of the targeted segments. Marketers use the STP model to segment customers by attributes, determine which segments to target based on profitability and growth potential, and position brands in places where targeted customers are most likely to find them. The steps involve identifying customer segments based on factors like demographics, targeting the most profitable segments, and creating a unique selling proposition to appeal to targeted segments through targeted advertising.

Uploaded by

Soumya Ranjan Pradhan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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What is the STP process in marketing?

It is a marketing strategy that can help businesses create market segments,


create advertising campaigns for those segments and adjust the position of
their products and services accordingly. With this strategy, the focus of a
marketing campaign is on the customer, rather than on the product. Marketing
teams use this model to segment their customer base by attributes such as
interests, needs and demographics.
By determining which group of customers to target in their marketing efforts,
they can optimise their marketing. This allows the team to develop campaign
strategies and approaches specific to their target audience.
How to apply the STP model in an organisation:
Here are the steps you can follow to effectively apply the STP model:
1. Segment the market
Identifying consumers with similar attributes and needs requires segmenting
the market. In this way, businesses can meet the needs of each group. Some
factors to take into consideration are age, gender, occupation, lifestyle,
behaviour and others.
2. Target a customer group
Find out which customer groups contribute most to the business by
considering each segment's profitability. Consider the size and potential future
growth of each customer group. You can conduct a PEST Analysis (political,
economic, social and technological) to identify the opportunities and threats
that may affect each segment. Targeting a segment successfully requires a lot
of effort, therefore the key is to focus on one segment at a time.
3. Position your products
Position your brand, products and services in the places where your target
customers are more likely to find them. By creating a ‘USP’ for your
product/service, you can create a specific identity about your brand, product
or service in the minds of your segment. This can help you target your
advertisements to specific segments which can help boost sales and increase
revenue. For instance, if your target customers often shop online, you can
spend more on online advertising or social media campaigns.
What is unique selling point (USP)?

A unique selling point (USP), also called a unique selling proposition, is a


marketing statement that differentiates a product or brand from its
competitors. A USP could be the lowest cost, the highest quality, the most
experienced, the first in its product type, etc. that makes the product different
from that of the competitor. A unique selling point can be thought of as "what
you have that competitors don't." 

E.g. 1. DeBeers- “A diamond is forever.”


DeBeers used the fact that diamonds are unbreakable and last forever to
symbolise eternal love. This was the USP they used, simple but powerful. The
USP created an increase in the sales of diamonds as engagement rings.
E.g. 2. Domino’s Pizza- “You get fresh, hot pizza delivered to your door in 30
minutes or less, or it’s free.”
The slogan clearly states that the company guarantees to deliver your pizza
within 30 minutes, and you can hold Domino’s responsible. This was an old
slogan of Dominos, but we have to acknowledge this USP. They still try to
deliver their pizza within thirty minutes and that’s why they still hold a
dominant position in the fast food industry.

4. Create a marketing mix


A marketing mix could be an advertising plan that enables the creation of an
integrated promotional strategy by combining multiple advertising elements. It
helps support the positioning of the product and reaches the target audience
more effectively.

Notes on STP - Compiled by Rakhi Dutta

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