Question

1. If you were a marketing manager of a company, please explain why would the STP model is useful tool for creating marketing communications plans to the target consumer

Answer 1

Targeting in marketing is a strategy that breaks a large market into smaller segments to concentrate on a specific group of customers within that audience. It defines a segment of customers based on their unique characteristics and focuses solely on serving them.

Instead of trying to reach an entire market, a brand uses target marketing to put their energy into connecting with a specific, defined group within that market.

The types of target markets are often segmented by characteristics such as:

• Demographics: age, gender, education, marital status, race, religion, etc.
• Psycho graphics: values, beliefs, interests, personality, lifestyle, etc.
• Business Industry: business industry or vertical
• Geographic Areas: neighborhood, area code, city, region, country, etc.

Through this strategy of market segmentation, brands get more specific about their target market. They can focus on a small group of customers who will be most likely to benefit from and enjoy their products.

For example, a brand that sells day planners may decide to focus on a smaller, specific target market. Instead of marketing to the masses, they may focus solely on selling planners to female business owners. Or they could choose to exclusively market to high school teachers. Both examples are smaller, more specific segments of the day planner’s potential market.

Why Is Targeting in Marketing So Important?

Targeting in marketing is important because it’s a part of a holistic marketing strategy. It impacts advertising, as well as customer experience, branding, and business operations. When your company focuses on target market segmentation, you can do the following:

Speak directly to a defined audience. Marketing messages resonate more deeply with audiences when readers can relate directly to the information. Brands that have a large, varied market of customers often struggle with creating marketing campaigns that speak directly to their audience. Because their viewers are very different, few slogans or stories can resonate with each person on a personal level. Through target marketing, you can alleviate this problem and focus on crafting messages for one specific audience.

Attract and convert high-quality leads. When you speak directly to the people you want to target, you are more likely to attract the right people. Your marketing will more effectively reach the people most likely to want to do business with you. When you connect with the right people, you are then more likely to get high-quality, qualified leads that will turn into paying customers.

Differentiate your brand from competitors. When you stop trying to speak to every customer in your market and start focusing on a smaller segment of that audience, you also start to stand out from competitors in your industry. When customers can clearly identify with your brand and your unique selling propositions, they will choose you over a competitor that isn’t specifically speaking to or targeting them. You can use your positioning in marketing to make your brand more well-known and unique.

Build deeper customer loyalty. The ability to stand out from competitors by reaching your customers on a more personal, human level also creates longer-lasting relationships. When customers identify with your brand and feel like you are an advocate for their specific perspectives and needs, they will likely be more loyal to your brand and continue to do business with you over a longer period of time.

Improve products and services. Knowing your customers more intimately also helps you look at your products and services in a new way. When you have a deep understanding of your target audience, you can put yourself in their shoes and see how you can improve your offerings. You can see what features you can add to better serve your customers.

Stay focused. Finally, the benefit of using targeting in marketing is that it also serves to help your brand and team. Target marketing allows you to get more specific about your marketing strategies, initiatives, and direction of your brand. It helps you clarify your vision and get everyone in the organization on the same page. You have more direction when it comes to shaping upcoming plans for both marketing and the business as a whole. A focused approach helps you fully optimize your resources, time, and budget.

Using targeting in marketing serves both customers and brands. It improves product development and operations, and it allows a brand to differentiate itself, stand out, and make a bigger impact. But before you start target marketing, you need something important.

Ultimately, market segmentation adds to a business’ ability to cater to diverse needs of a considerably sized consumer market, where various sections of consumers may have varied needs, interests and perceptions of different products and services. Taking into consideration different conclusions derived through market segmentation, businesses can allocate their resources to develop a marketing mix in coherence with the demands and requirements of their target consumers. Market segmentation has evolved as an essential marketing component and today, it is utilized by businesses operating in different industries to fulfill various purposes and meet diversified marketing requirements.

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