Table of Contents

Lesson 3 Segmentation Targeting and Positioning (STP)

Lesson 3 Segmentation Targeting and Positioning (STP)

Summary

The Segmentation–Targeting–Positioning (STP) framework helps marketers

  1. Segment a broad market into distinct groups,
  2. Target the most attractive of those groups, and
  3. Position a product or brand uniquely in each group’s mind.

Originating in 1956, STP remains central to both traditional marketing and digital strategies like SEO, where it guides keyword grouping, audience focus, and on-page messaging.

1. Segmentation

Definition
Market segmentation is “viewing a heterogeneous market as a number of smaller homogeneous groups, each with distinct needs and behaviors”1.

Common Bases for Segmentation

  • Demographic: age, gender, income
  • Geographic: region, urban vs. rural
  • Psychographic: lifestyle, values, personality
  • Behavioral: purchase history, usage rate

Criteria for Effective Segments

  1. Measurable: size and purchasing power quantifiable
  2. Accessible: reachable via marketing channels
  3. Substantial: large and profitable enough
  4. Actionable: respond distinctly to tailored offers

Advanced cluster‐analysis methods can help identify statistically valid segments2.

2. Targeting

Evaluating Segments
Marketers compare segments by size, growth potential, competitive intensity, and strategic fit.

Targeting Strategies

  • Undifferentiated (Mass): one offer for all
  • Differentiated: distinct offers for each selected segment
  • Concentrated (Niche): focus on a single segment
  • Micromarketing: personalize at the individual or small‐group level

When data permit, “markets of a single customer” can be justified to achieve extreme personalization3.

3. Positioning

Definition
Positioning is “crafting strong, favorable, and unique associations in the consumer’s mind”4.

Key Approaches

  1. Functional: emphasize product benefits (e.g., “fastest-loading pages”)
  2. Symbolic: appeal to self-image or social identity (e.g., “the eco-friendly choice”)
  3. Experiential: highlight sensory or emotional experience (e.g., “delightful user journey”)

Postmodern fragmentation demands continuous adaptation of positioning to shifting consumer identities5.

4. Applying STP to SEO

  1. Segmentation → Keyword Grouping
    Group keywords by search intent (informational, transactional, navigational) and user sophistication (e.g., “SEO basics” vs. “advanced backlink audit”).

  2. Targeting → Content Focus
    Prioritize segments with high volume, low competition, and alignment with your expertise.

  3. Positioning → SERP Differentiation
    Craft title tags, meta descriptions, and on-page headlines that express your unique value: depth, clarity, or exclusive tools.

By mapping STP onto SEO, you ensure that your keyword strategy, content creation, and on-page messaging align with well-defined audience needs and stand out in search results.

References

  1. Smith, W. R. (1956). Product differentiation and market segmentation as alternative marketing strategies. Journal of Marketing, 21(1), 3–8. https://doi.org/10.2307/1247695 ↩︎

  2. Wedel, M., & Kamakura, W. A. (2002). Market segmentation: Conceptual and methodological foundations (2nd ed.). Kluwer Academic Publishers. https://doi.org/10.1007/s00357-001-0038-6 ↩︎

  3. Kara, A., & Kaynak, E. (1997). Markets of a single customer: Exploiting conceptual developments in market segmentation. European Journal of Marketing, 31(11/12), 873–895. https://doi.org/10.1108/03090569710190587 ↩︎

  4. Keller, K. L. (1993). Conceptualizing, measuring, and managing customer-based brand equity. Journal of Marketing, 57(1), 1–22. https://doi.org/10.1177/002224299305700101 ↩︎

  5. Firat, A. F., & Shultz, C. J. II. (1997). From segmentation to fragmentation: Markets and marketing strategy in the postmodern era. European Journal of Marketing, 31(3/4), 183–207. https://doi.org/10.1108/EUM0000000004321 ↩︎

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