Transcripts
1. Introduction: In this class, you're
going to understand one of the most important concepts
of modern marketing that will help you to find your target audience so that you don't waste your time on other audiences that
will never convert. By the end of this class, you will have an understanding
of the basics of segmentation, targeting,
and positioning. And you will be able to find your target audience with a
simple six that framework. Stp marketing is one of the most important concepts
of modern marketing. While mass marketing is a bit
like spraying the market, the STP model takes
a targeted approach, getting specific about
the target audience and the conditions
that they exist. This model represents
a change from a product centric focus to more of a
customer-centric one. So brands can analyze
and understand their audience and position themselves to better
appeal to them. Hello, my name is Stella
Chris icky and welcome to this class about segmentation, targeting, and positioning. In this class, we'll cover what STP marketing is, its benefits, and how it can be used, how to leverage it for
your brand strategy, and how to find your
target audience. So if you're ready,
then let's start.
2. What is STP marketing: What is STP marketing? Stp marketing is a
three-step model that allows brands to, number one, segment
their target market, number to target their
specific sector. And number three, position
to appeal to those segments. It allows brands to develop hybrid targeted
positioning and messaging which translate into more
effective marketing strategies more relevant to their
target audience groups. Now, STP is an acronym for
the three described steps. So segmentation, targeting,
and positioning. Using the S-T-P process, brands are armed with a powerful and highly relevant understanding
of their audience, their challenges, their fears, their desires, their
wants, and their needs. In other words, they have everything they need to resonate and influence the
buying decision of their target audience. And these STP model, this segmentation, targeting
and positioning modal. It's highly effective
because it trims the fat and unnecessary
cost and effort of marketing to groups
who are unlikely to want or need what
the brand has to offer. Essentially, marketing
becomes cheaper and responses are
dramatically increased. On the flip side,
brands that avoid the STP approach and use
broad-based messaging and positioning are less relevant
to the audience and have to work much harder to
achieve the desired response. In fact, almost 60%
of customers say that personalization directly
affects the decision to buy from certain brands. And 44% agreed that experiencing personalized
positioning or experiencing personalized communication
from a brand really influences their decision
to buy from that brand. Again.
3. Benefits of STP model: So let's have a look at some benefits of the
STP marketing model. Now, I've already
alluded to some of these benefits a
little earlier through enhancing the efficiency
and the effectiveness of marketing campaigns
and ultimately attracting more relevant buyers. And that is without question, the main driver behind
the STP approach. But let's have a look
at some more benefits. Number one, high relevance to buyers through segmentation
and targeting. Brands can refine their position and B tune their
message and really hit the right chord
with the segments of the market that they
want to appeal to. Or who want or need what
the brand has to offer. The more relevant the message, the more the audience see themselves in the
story of that brand. And the more acute
the pain points are throughout the copy, the more likely they are to see themselves in that story or to see themselves in the outcome that the
brand is offering. Number two, lower
marketing costs. So another key benefit to the S-T-P process is the
reduction of costs of marketing spend broader based
marketing aims to cast a wide net and you need to spend a lot of money to do that. And there's a lot of wastage of marketing budget by
casting such a wide net, but laser-focused STP marketing
aims for specificity, relevance over media spend. And this is especially
important for smaller businesses that
simply don't have the budget. They don't have the deep
pockets to be able to spend on wide net
marketing campaigns. So the more efficient
the campaign, the better and the STP approach
really does help that. But along with lower
marketing costs and higher relevance, there are more benefits
to the STP approach, including increased sales through highly
targeted campaigns. More engaged followers
who feel understood avoiding campaign wastage by attracting the right audience. It also offers
smaller businesses a seat at the advertising
and marketing table. It's more effective
in allocation of marketing budget as well to not have to cast that wide net and take the
broad-based approach. It also offers
deeper insights into the customer which
can be used to really resonate
with who they are. Now, if you want to apply the STP marketing model
to your business, follow the steps in the step formula which
you are about to learn. Now the step formula
is the easiest way to summarize and to memorize
the STP marketing process. So it's segmentation plus
targeting equals positioning. So follow each step in the
formula and arm your brand with the ability to reach
customers more effectively.
4. STP model breakdown: Step one, segmentation. Now this step is
all about slicing your market up into the
different groups of people that exist within
your market based on criteria that are most important for your products or services. But there are four popular types of customer segmentation. Geographic segmentation. So define this
segment by dividing your audience according to
their country, the region, they state, their city,
the neighborhood, and so on. Demographic
segmentation. These segments that customers based on their
age, their gender, their education level,
their occupation, their marital status, their ethnicity, and
their sexuality. Then you have psychographic
segmentation in the audience here is segmented to define who the customers are
through their opinions, their activities, their
hobbies, and their lifestyle. And then you have
behavioral segmentation. And this is all about defining your audience
by dividing them into the groups of people based on their
purchase behavior. So, in other words, according to what they buy, according to what they browse, how they buy, how often
they buy, and so on. The second step of the STP marketing process
is targeting. Your goal on this
step is to look at the segments created on
the first step and then see which segments
are most likely to convert an ultimately
become customers. Highly sought after
target segments might include any or
all of the following. Highly profitable, low cost of acquisition and high
growth potential. So when analyzing your segments, you want to look
at the following. You want to look at the size. How big is the market segment? How likely is that segment
to grow in the future? And what does the growth
potential look like? Profitability. Uncover which segments
are willing to spend more on the products or services
that you have to offer. Which segments have
higher lifetime value or profitability
and reachability. It's important to understand
how hard or how easy it is to reach the segment with
your marketing strategy. Now the best way to do this is to include
customer acquisition costs to see which segments
are higher or lower. A higher customer
acquisition cost means lower profitability. So consider these
factors carefully when defining your
target to ensure that your target and the segments
that you've defined represent the best opportunity
your brand to grow. And step number three
is positioning. Once you've segmented your
market and clearly define the segments that your brand or your campaign will target. Now it's time to move to the final step of
the S-T-P process, which is to position
effectively. Now whether you're
positioning and brand or its products
or services, positioning isn't
done in a silo. The position and
brand takes must consider the other
competitive players to ensure that the
brands offering is absolutely unique when
compared to those competitors. And without effective
positioning, the offer will represent
more of the same, which is very easy for
the market to ignore. So you don't want
to be the same. You don't want to come
across as being the same. You want to have something
distinctly different. And that is positioning
one-on-one. So let's take a look at an
example of STP marketing. Tesla is a great example of
segmentation, targeting, and positioning in action, because the global car market has many different segments. From the four-wheel
sport Dr. enthusiasts to their pitied hatchback funds
and everywhere in-between. Tesla segmentation isolated the electric car market
and more specifically, the gap in the electric
performance car market. So Tesla's positioning
approach was to go deep first, and then later, they established
themselves as a prestige, luxury electric sports car, before later expanding into wider segments with
broader appeal. So using the STP approach, Tesla identified the
market by segments, define the niche segment
that they wanted to target. And then they
position the brand to appeal to that segment with the flexibility to expand later into the broader
electric car market. Now, STP marketing
is without a doubt, the key model to
help you identify your most valuable customers and position yourself as the
best brand for them. Not only is this approach
efficient and effective, it can help any type or size of business to
grow and to gain market share by engaging with personalized and
relevant messaging designed to appeal to
specific target segments. So even if you have plans to take over the world
with your brand, give that brand a chance
to find early success by tightening up who it's for and
how it's going to connect.
5. Find your target audience | 6-step framework: How to find your target market. Now that you have an
understanding of the STP model, you're going to
learn how to find your target audience with
this six step framework. So you can uncover exactly
who you're trying to help and use that detail to connect with their
human instincts. Now, why is it that we
broaden our businesses? Someone could answer that
question with something like to generate leads
or to make sales. But these results are a
byproduct of what we're actually trying to do by
branding our businesses. What we're trying
to do by branding our businesses is to
make connections with our audience so that
we can shape how they see and how they
feel about our brand. Now, you can do
absolutely everything right within building a brand. From the strategy and the communication
and the positioning, to the visual identity
and the user experience. But if you don't have a crystal clear image of
who your audience is, who you're trying
to connect with, and how they feel, how they think, how they act, and how they make decisions. If you don't have
that information that anything else
that you do within the development of the
brand is going to be for nothing because it won't be aligned with who you're
trying to connect with. Before we dive into the
sixth step framework and get into the nitty-gritty of
the individual steps. I want to highlight
the fact that we're at a hugely
advantageous position these days in how
much information is freely available to us
out there in the market. So getting out there into the market and finding
the information that's readily available online in terms of who
your audience is, it's an absolute must in
one of the best places that you can go to for this
information is social media. Whether your audience
is in a group or they're following one
of your competitors. Their information is there
out in the public forum, out in the public marketplace. Now you have to do is go and
search for that information. Look at what they're doing, and look at what they're asking. What is it that they
want from your brand, from anybody within
your marketplace? So the information is out there, not just on social media, but also in forums
like Reddit or Quora. This information is out there. Your audience is asking
questions and all you need to do is go out there and
find that information. Step one, start with a title. You're just categorizing
your audience at this point. You're not getting into
any kind of detail. You want to start as
broad as possible. Because from this point on, we're going to get more and more narrow with every single step. But you do want to start
from abroad point of view, just so you have an
overarching idea of who it is that you're
trying to target. Now for example,
this might be Mike, the stylish professional
age between 2135, or it might be Jane, the sporting mum,
age between 3345. So you're really
just trying to put a title on who it is
that you're targeting. So you have a broad
idea and abroad point of view before
we start to get more and more narrow step to uncover the circumstances
of their lives. Now, the circumstances
of your audiences lives are essentially
their demographics. So here we are talking
about their age, their gender, their
profession, their income. Are they married?
Do they have kids? Where do they live? All of these details
will fill in a picture of the
circumstances of their lives. And this is really
where the broad title of who your audience is starts to come to life
in a little bit of detail. So get into as much
information as you can about their demographics and
uncover their circumstances. Step three, understand
their behaviors. Here, you want to
really get into the personality of
this individual. In step number two, we are uncovering
their circumstances. But step number three, we're starting to get a
little bit more human. So we're starting
to uncover things like what magazines
they like to read, what news sources
they listened to, what type of music
do they listen to? What food do they like to eat? What restaurants do
they like to go to? What do they like to do
in their spare time? What sports today watch? What sports do they play? What hope is do they have? This really starts to paint a picture of the
personality that they have, the type of person
that they are, the characteristics
that they have. Step four, identify their goals. Now, identifying the goals
will give you an insight into their psyche in terms
of the makeup of the person. So there are two levels to this. The first level is to understand the underlying
definitive goal in terms of what their
lives per post is, what mission their own. What is it that they want to achieve overall
within their lives? What is that main goal? Then, on the second level, a more contextual level is to understand what is it
that they're trying to achieve right now that you are going to be
able to help them with within your brand in terms of the outcome
that you provide them. So understanding their
goals will give you a real insight into
their psyche and understanding their goals on those two different
levels in terms of their overarching
goals for their lives. And then they're
contextual goals in terms of what they're trying
to achieve right now. Step five, and cover
their obstacles. So they're trying to
achieve something. They're trying to
achieve that goal, their lives goal,
they're contextual goal. But what is it that standing in the way of those
goals right now? What obstacles are
they coming across? What challenges are
they coming across? If it was easy to get
to their end goal, they wouldn't need help. They're probably going
out in search of help because they can't
do it on their own. And if they come to
it on their own, what is it that they
cannot do on their own? What is getting stuck, what is in their way, and what is it that
they need help with? Step six, reveal their emotions. Now, if they're trying
to get somewhere, if they have this big goal
that they want to achieve. If they have this immediate goal that they want to achieve in something is standing
in their way and blocking their
route to get there. Well then they're going to have some kind of emotion
attached to that. They will have an emotion attached to the goal
that they want to achieve in terms of how that will make them feel
if they achieve it. They also have
emotions attached to the obstacles that they
are standing in their way. How do those obstacles
make them feel? And if they can get rid of those obstacles and
achieved that goal, what is that going to
do for their lives? And how is that going
to make them feel? So tapping into their
emotions in terms of both their goals and their challenges is
really, really critical.
6. Conclusion: There are other ways to find your audience with the majority of the focus on the demographics
and psychographics. And they are a very
important starting point. But even if you know the
demographics and psychographics, you still don't have
any real information that will help you to
connect with your audience. Because it's through the human emotions
that you're going to connect it through understanding what they're going through, understanding those goals,
understanding those obstacles, and understanding
the emotion attached to both the goals
and the obstacles. So when you start to look
at who your audience is, don't look for the
demographics and psychographics as the end goal. Look for that information
as a starting point. You want to go a lot
deeper than that. You want to understand
who your audience is. Because when you have
this information, you're armed with really, really valuable
insights that you can use in not only the
development of your brand, but you can use it
in the communication at every single touch point to connect and resonate with who your audience is and
how they're feeling.
Stella Chrysaki, Digital Marketing Instructor
