In order to stay competitive, companies need to create ways to attract new clients and improve their services and products. The STP framework involves addressing three key areas, namely, segmentation, targeting, and positioning, in order to formulate a marketing strategy that will be relevant and effective for a particular business (O’Guinn et al., 2018). The case of StockX presents an interesting case of how an STP strategy can deliver considerable benefits to a company.
StockX is a platform providing clients with a variety of fashionable items, such as sneakers, which uses a specific marketing strategy. It is clear that street-wear fashion, sold on StockX, is most popular among younger generations. As a result, using segmentation, StockX determined its primary segment to be young people interested in the sneaker culture (Pasquarelli, 2021). Thus, the company gained an understanding of the audience that it had to target. Continuing to apply STP, StockX decided to employ digital advertising in order to target young people who tend to be more tech-savvy than older adults (Pasquarelli, 2021). Younger generations always use gadgets, including smartphones, and placing advertisements online enabled StockX to attract new clients. Finally, StockX utilized a unique positioning strategy, which involved calling the platform a “stock market of things” (Hensel, 2019). Essentially, using StockX, buyers can offer bids to sellers, while the latter can agree to or refuse their offers. Thus, StockX’s customer value was that buyers and sellers could freely interact with one another without any platform restrictions. By providing more freedom to people, StockX was able to achieve profitable relationships with its clients.
STP is an essential element when creating a marketing strategy, and the correct use of it can deliver significant benefits to the business, as exemplified by StockX. The fashion resale platform was able to correctly determine its core audience as young people and targeted them with digital advertising. Moreover, StockX let sellers and buyers openly negotiate offers which attracted the attention of many clients since such a feature became a source of customer value.
References
Hensel, A. (2019). StockX’s new CEO plans to position the sneaker marketplace as a brand partner. ModernRetail. Web.
O’Guinn, T., Allen, C., Scheinbaum, A., & Semenik, R. (2018). Advertising and integrated brand promotion. Cengage Learning.
Pasquarelli, A. (2021). How resale platform StockX is attracting new shoppers. AdAge. Web.