What is STP Model in Marketing? Segmentation, Targeting, and Positioning? Why it matters?

The STP Model in marketing stands for Segmentation, Targeting and Positioning.

It is a model which helps businesses understand their consumers and create strategies that will meet their needs.

Segmentation involves dividing the market into different groups, based on parameters such as age, income, lifestyle, and location.

Targeting is the process of selecting the most suitable segments and creating a specific marketing mix for each of them.

Positioning is the process of creating a unique image of the product or service in the minds of the consumers.

The STP Model is essential for businesses as it helps them create strategies that are tailored to different consumer segments, which can help them gain a competitive edge.

For example, a clothing retailer may segment the market based on age and target the teenage segment with a specific marketing mix and position their products as fashionable and trendy.

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