Amid elegant surroundings, as the fragrant beriyani teased our palates and other senses, a branding colleague yelled ‘STP’ and we collapsed into peals of laughter to the puzzlement of the others at dinner! It stands for Segment, Target, and Position and is a marketing method for getting your brand into the hands of the consumers who will pay for it, instead of using a ‘machine-gun’ approach.
What it means is that the road to taking a product or service to market begins with deciding on the segment to focus marketing efforts on, then to target a profitable part of that segment and to subsequently launch a positioning campaign that appeals to that targeted part of the segment. This road map enhances profitability and reduces wastage of advertising and other efforts.
Amid the tantalizing chutneys, melt-in-your-mouth vindaloo and soothing raitas, dinner talk had revolved around the myriad sectors that would benefit from a recent innovation and and how it could be promoted in a new market segment. We asked ourselves, could it be marketed directly to the end-user? Or should it first be presented to the government agencies to adopt or maybe to the educational institutions to declare as their own product? What would be the most productive entry strategy for us to employ?
Then there was the pricing to the different buyers and the marketing fees to those who would carry it, not to mention licensing agreements etc. Well after much animated excitement about the vast buffet of possibilities before us, over aromatic masala teas we finally arrived at how we would prioritize taking the product to market and what pricing strategy would be most attractive in the long-term to secure repeat business and establish the brand.
The questions to ask yourselves when positioning your brand are
1) Who will pay for it?
2) Where are they located online and offline?
3) What features would attract this sector?
4) What pricing structure will attract them?
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