The Segmentation Targeting Positioning (STP) Model
As a characteristic of the STP model and its general benefit, one should understand which opportunities this method creates for marketing tools to benefit the company. As Basil et al. (2019) state, “the general idea behind STP is that people have different needs and respond to different motivations; therefore, you should choose whom you wish to reach and do that well…” (p. 27). To achieve these purposes, the method includes steps such as segmenting customers into groups, targeting them, and, therefore, positioning them.
Advantages
During Segmentation
The advantages of the STP model can be considered from every step discussed above. Therefore, one should stress the benefits of segmentation, targeting, and positioning. First, the primary advantage of the segmentation approach is the ability to define distinct client groups. Among such groups, one can name country groups, industries, and particular consumer groups (Schlegelmich, 2022). Consequently, as a significant advantage of this first step in the STP model, the company can structure and categorize customers to align the marketing strategy with them more effectively.
During Targeting
Second, the targeting process requires a thorough assessment of the chosen segmented groups. It should be used to select the most appropriate groups for the company to operate with. In other words, the company should select segments that align with its goals to achieve maximum profit and revenue. For example, the organization can choose the group of countries or individual countries that will be most effective for its marketing strategy, given policies, laws, and opportunities. In conclusion, the key benefit of targeting is the ability for the corporation to identify the most advantageous customers and provide them with products or services.
During Positioning
The final step of the STP model involves positioning the company’s products through a marketing strategy. Its advantage is that it leverages previously segmented and targeted customer groups to develop a unique selling proposition (USP) for each group (Yuan et al., 2020). In the case of successful implementation, positioning will create multiple profits for the company while providing the most suitable customers with the most appropriate products and services. As a result, the organization will stand out from competitors in the market.
Practical Methods in Communication with Clients
Another essential benefit of using the STP model to construct a qualitative marketing strategy is the efficient, innovative communication methods it enables. For example, gathering data for segmentation and targeting processes can involve incorporating mobile communication between the company and clients. According to Permana et al. (2023), “the use of mobile communication is also mostly used in the marketing and segmentation processes in multilevel firm-level marketing with multipoint mobile communication” (p. 1). As a result, it is possible to obtain relevant and sufficient data regarding customers’ preferences and behavior to target their needs appropriately with specific positioning.
Disadvantages
Dynamic Markets
On the contrary, the STP model has significant drawbacks that should be considered when implementing it in a marketing strategy. Among the most crucial disadvantages is the dynamic nature of markets. It means that markets worldwide are constantly changing.
Therefore, the company should be flexible while addressing clients’ needs when using marketing tools. This makes the STP model unsuitable for this scenario, as it involves a chain of actions: segmentation, targeting, and positioning. In the event of specific market changes, the entire process should be reconsidered, as all steps are closely intertwined. It will need not only additional time but also costs.
External Factors
In addition to internal market factors, external factors also play a crucial role. In their research, Kotahwala (2020) stresses that customers’ values can significantly influence the company’s marketing strategy. In particular, this behavior can be significantly influenced by various external events and trends worldwide.
Among these psychological processes, it is essential to highlight the role of sustainable purchasing patterns (Kotahwala, 2020). It is an example of how specific developments, such as climate change, can address issues with consumers’ preferences. Notably, the STP model cannot predict these issues and, as a result, will not be effective.
Competitiveness Among Segments and the Company’s Products
Finally, as the third significant disadvantage of the model, it is crucial to underline the situation within the company. While emphasizing specific products for particular customers, other services and clients can be neglected. As a result, the company may lose some clients (Ruvio and Iacobucci, 2023). Moreover, many products can become outdated and uncompetitive due to a lack of attention. Therefore, this disadvantage can lead to an imbalanced situation within the company and the loss of a significant number of customers.
STP Model Application and Cemex
Company Background
The Cemex organization was chosen as the company to be considered. The corporation specializes in innovative solutions in urbanization, buildings, and other construction, providing services and products. Among them, it is vital to stress more sustainable cities with Cemex’s urbanization solution (About Us, n. d.). These points assume four primary products that Cemex provides: waste management, performance materials, industrialized construction, and related construction services. Consequently, it is helpful to apply the STP model to this product, as it underpins Cemex’s operations.
Segmentation
The first step, segmentation, will depend on identifying the cities where the company’s product is most profitable to apply. While implementing innovative technologies, such as sustainable concrete for building cities, it will be crucial to understand which environmental, climatic, and other natural conditions are most suitable for their use. Another step in segmentation involves identifying the most appropriate opportunities in the context of laws, policies, and other human-created potential barriers (About Us, n. d.). Consequently, after the segmentation process, Cemex will be able to obtain a list of cities that are most suitable for the company’s services. It will serve as a qualitative basis for constructing a marketing strategy focused on this specific city group.
Targeting
The following step requires thorough consideration of the chosen group of cities. This targeting stage should be conducted to understand the current preferences and concerns of both the city’s authorities and citizens. Moreover, it is essential to collaborate with stakeholders and local businesses to understand their struggles and how Cemex can help them improve their situation (Krouma, 2022).
This method will be effective for the company by identifying how the organization’s products can benefit the segmented group. Consequently, it will make products more popular and in demand (Ghauri and Cateora, 2021). Remarkably, in the event of success, one of the benefits will be a long-term contract with Cemex, given its dependence on its products. Taking this into account, Cemex’s marketing department should position the product as the most suitable solution for the targeted segment to address local problems and deficiencies.
Positioning
Finally, the closing stage of the STP model application to Cemex is the positioning. After the marketing research based on the segmented and targeted group, it will be vital to construct the selling proposition (USP). Notably, in terms of Cemex’s functional specification, one should state that its products focus on long-term projects to be built in cities over the years (Ghauri and Cateora, 2021).
Therefore, when developing the USP, it is essential to address various marketing issues to make the product more attractive to customers. For example, given the emphasis on Cemex’s eco-friendly cement, it would be efficient to include a quality guarantee. In other words, the company should create a package of services that complements the main product.
Digital Marketing Funnel and Cemex
Awareness
The business’s digital marketing funnel outlines the steps the customer will take during the collaboration with the company. It begins with awareness of the organization’s product. Notably, in the case of digital marketing technology and the Cemex company, tools such as social media, the official website, Google Ads advertising, YouTube channels, and other effective methods will be helpful. They should highlight the company’s advantages and how it is better compared with other market players (Ghauri and Cateora, 2021). If a marketing strategy is successful at the awareness stage, it can turn into a potential client’s interest.
Interest and Purchase
The following step is closely tied to the customer’s interest in the company’s product. It is essential to use marketing instruments not only to establish this interest but to support its high level. Therefore, using social media platforms and advertisements, Cemex should stimulate interest among the segmented group.
To achieve this purpose, the use of various media materials, such as pictures and videos that depict the advantages of sustainable cement, is essential. They will demonstrate the stages of its production, storage, and delivery to the customer (Kotahwala, 2020). Moreover, attention will be paid to the graphical representation of the statistical data, which will describe the environmental and ecological advantages of this cement.
In the end, the final step leads to the purchasing process. A successful marketing strategy should establish a digital funnel that supports the client on their journey from awareness to purchase (Kotahwala, 2020). Consequently, during the final step, all attention is on generating revenue from selling the product or service through effective marketing. Moreover, in the case of Cemex, the additional benefits can be in long-term partnerships that assume the company’s product contracts for ongoing purchases.
Marketing Manager’s Responsibilities
As a marketing manager, I will focus my social media efforts on sustainability and eco-friendly products. It is essential to stress that Cemex’s products, particularly cement, have unique characteristics that enable customers to build a sustainable business (About Us, n. d.). It will not only improve the quality of the materials but also enhance the company’s market position and reputation. These points should be conveyed by marketing managers when communicating with the client via digital platforms and social media. Notably, the above-mentioned Cemex’s advantages should be highlighted throughout all stages, including customer awareness, interest, and purchase.
Application of Social Media Activities
The incorporation of social media marketing tools differs from other company goals in one significant way. In particular, social media will present the corporation’s image, values, and views on sustainability and development. For example, it will not only depict information such as prices, instructions, and the product’s exploitation, which will be important for the purchase stage to obtain profit, but also open the company’s entire journey. It is essential to create and support Cemex’s brand and identity to be distinguished from other companies (Basil et al., 2019). While taking into account the possibilities that social media provide for their users, aspects such as photos, videos, graphics, and storytelling will be vital.
Social media can also be essential for distributing brand-related content. Notably, nowadays, many social media networks allow one to share information across different platforms and applications. For example, Cemex will use the Meta system, which includes platforms such as Facebook and Instagram.
It will be helpful to share the content immediately and attract new customers. The qualitative professional in marketing will use their skills to conduct analytical research based on the customer’s activity (Basil et al., 2019). There are many specialized software programs, such as Google Analytics or Mixpanel, that can track clients’ actions on the company’s website or social media pages.
Appropriate Social Media
When choosing the most efficient social media platform, several factors should be considered. First, not only social media’s popularity but also its ability to depict, demonstrate, and share the company’s values are crucial. Therefore, as part of a marketing specialist’s duties, the most suitable media should be selected to create a high-quality user journey from product awareness through the purchase phase (Basil et al., 2019). Taking these factors into account, the most suitable media for Cemex will be Instagram. This choice is driven by the media’s ability to share content in various formats and by an intuitive interface that allows clients to connect directly via chat.
Traditional Marketing Activities
As traditional marketing services are essential for the company, one can stress advertising and in-person sales. Using social media networks and real-world locations, such as underground stations, will help distribute advertisements. Cemex should demonstrate the quality of its products and services by hiring professionals, such as graphic designers, to deliver information not only clearly but also efficiently (About Us, n. d.). In other words, the advertisement should be memorable to potential clients and draw their attention. Another marketing activity will involve in-person communication, which will be possible on social media such as Instagram. A personal approach to every customer can lead to long-term loyalty.
Reference List
About Us. (n. d.). Cemex.
Basil, D., Diaz-Meneses, G., and Basil, M. (2019). Social marketing in action: Cases from around the world. Germany: Springer International Publishing.
Ghauri, P. and Cateora, P. (2021). International marketing. Colombia: McGraw-Hill Education.
Kotahwala, K. (2020). ‘Chapter 15 – The psychology of sustainable consumption.’ Progress in Brain Research, 253, pp. 283-308.
Krouma, S. (2022). Marketing method segmentation, targeting and positioning. Germany: GRIN Verlag.
Permana, A., Purmono, A., Sarjono, H., Maulana, F., and Setyani, E. (2023). ‘The Utilization of Mobile Communication on Marketing: A Systematic Review.’ Procedia Computer Science, 227, pp. 101-109.
Ruvio, A., and Iacobucci, D. (2023). Consumer behavior. United Kingdom: Wiley.
Schlegelmich, B. (2022). Global marketing strategy: An executive digest. Switzerland: Springer International Publishing.
Yuan, C., Ganchev, I., and Li, X. (2022). Proceedings of the 2022 international conference on business and policy studies. Singapore: Springer Nature Singapore.