What is STP?
As marketing teams, it is essential to know that what you are trying to sell is not for everyone and shouldn’t be sold as such. It is important to understand your ideal audience and market to that. In order to do so you must use techniques called segmentation, targeting, and positioning. These processes allow you to collect data from prospective customers. Once collected, you can segment them into different groups based on characteristics such as psychographics. Once segmented, you can easily target personalized groups with specific marketing that aligns with the consumers interests or in market segmentation. It, “can also reveal niche markets, uncover new customer or market opportunities, and, ultimately, make your marketing efforts more efficient and cost-effective.”
By positioning your product in a way that highlights what is most important to the segment you are targeting, you can increase the appeal of your product.
Panera Bread Email Campaign
An example of a company that has excelled in using this segmentation strategy is Panera Bread. While still a “fast casual dining” place, Panera Bread knows it has a large health conscious as well as earth friendly consumer base. With this group segmentation at the top of their mind, they began to target them by positioning their product in a way that shows off the health and earth conscious tactics they take.
If Panera Bread were to create an email list with these prospective customers, they would most likely have two segmentations. The first group would be these health and earth conscious consumers. The other group would be a group that is known for simply just wanting fast, affordable, and delicious food. The second group would not have any prior sign of striving for a healthier earth or meal. Within these email lists, the tone would be very different. For example, when sending out an email to the health conscious group, the focus would be advertising the steps the company is taking to keep the consumer and earth happy and healthy. They might show new health options added to the menu or promote their lack of plastic within the email.
On the other email list, the focus would be on promoting quick and delicious food with no hassle. In this email they might promote the rapid pick up feature. They could also show off a visual one of the most delicious even if not the healthiest option. Both would be appealing to the intended audience and be more likely to gain conversions because of it. Knowing and appealing to your audience is always the best way to market yourself and or product.