Market Segmenting, Targeting, and Positioning
Let's consider segmenting, targeting, and positioning (STP), known as the strategic marketing formula that helps marketers identify and segment their audience, target their market, and post their products to cultivate their desired brand position.
How Markets Are Segmented
Types of Segmentation Bases
Table 5.1 "Common Ways of Segmenting Buyers" shows some of the different types of buyer characteristics used to segment markets. Notice that the characteristics fall into one of four segmentation categories: behavioral, demographic, geographic, or psychographic. We'll discuss each of these categories in a moment. For now, you can get a rough idea of what the categories consist of by looking at them in terms of how marketing professionals might answer the following questions:
- Behavioral segmentation. What benefits do customers want, and how do they use our product?
- Demographic segmentation. How do the ages, races, and ethnic backgrounds of our customers affect what they buy?
- Geographic segmentation. Where are our customers located, and how can we reach them? What products do they buy based on their locations?
- Psychographic segmentation. What do our customers think about and value? How do they live their lives?
Table 5.1 Common Ways of Segmenting Buyers
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By Behavior |
By Demographics |
By Geography |
By Psychographics |
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