Are you trying to find the right customer for your product or business? Not sure what the right way to do it is? Don’t know how to position your brand effectively? Read this detailed guide to find correct answers to these and many other important questions. We will explain in detail how to go about finding the right customer segment and how to position your brand effectively to become the leader in that segment.
We will also introduce you to the magic STP framework which is used by the largest marketing departments in the world and taught in the most prestigious business schools such as Wharton. Knowing who your customers are and knowing them well is essential to overall marketing and business success, regardless of whether you are a software development company such as CyberCraft or an offshore technical support services technology firm.
However, many entrepreneurs and managers have a hard time understanding and marketing to their customers. In fact, many of them operate without having the slightest idea of who their customer is. Such a state of affairs is unacceptable if your business is to be successful. Below we will explain how this state should be corrected.
Enter the STP Framework
So, what is this STP thing about? And what does the term stand for? STP stands for Segmentation, Targeting, and Positioning. We are going to break down each of these and explain how to apply them to find and target your ideal customer.
Segmentation
First, you must know what market you are competing in. That’s the first basic step. If you don’t even know what market you serve, then there is no point in doing anything else. You must choose a market you want to compete in. Once you know the market, you must understand that every market has segments (these are a kind of mini-markets or smaller markets inside markets).
For example, the wine market can be broken down into such segments as red wine, white wine, pink wine, etc. Or you can break it down by customer segments such as men, women, French customers, Italian customers and so forth. As you see, there are literally a million ways to segment a market. Therefore, you must define specific segmentation parameters which should be customer-oriented, such as age, gender, etc. Using those parameters, you must break down a market into specific segments.
Targeting
Once you have segmented a market, it’s time to select the most attractive segment. In most cases, this is going to be the customer segment with the most money. However, it’s a mistake to think that just because a segment has a lot of money in it, it is the best option for you. The reason is simple – competition. You must ask yourself if you are able to successfully compete in that segment. If you are not, then you should move to the second most attractive segment and so forth. You must balance attractiveness with your ability to compete.
Positioning
Once you know what customer segment you are targeting, the final step is to deploy effective positioning. Now, what is positioning? Positioning is the desired perception of your brand which you want to convey to a customer. So, how do you deploy it? You need to create a positioning statement. Such a statement consists of three parts: the target audience, a point of difference and a point of reference.
The former describes the customer group you are targeting, the second explains why a customer should do business with you instead of any other competitor and the latter mentions the niche or market you are competing in. A well-crafted positioning statement will help to build an effective brand image in the minds of your customers and make your brand successful.
Final Words
Finding the right customer segment and knowing your customers better than your competitors is essential to marketing and overall business success. This is not a journey, but a step-by-step process in the form of STP framework. It allows you to segment a market and select the best customer group to target, and then create an effective positioning strategy for your brand. If you implement it correctly, you should expect much success for your business. Good luck:)
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