Business Framework no. 1: Marketing - STP Framework

 

An overview of the framework, every Framework contains:

• The purpose of the framework,
• A brief overview of the outline,
• Case example - to illustrate the use of a frame in the real world
• Conclusion - take-out key

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STP Framework: The STP model (Separation, Identification, Position) will help you choose and get closer parts of multiple customers. It is a method used to find the right part of the customer, create and refine marketing strategies, and invest in effective marketing resources.

Separation: One product cannot meet the needs of an individual. So, it is important identify different types of clients and divide them into responsive 'segments' in the same way about marketing activities, to help them successfully with the right product. Divisions can be made on the basis of many factors such as location, behavior, etc.

Identification: Identification of posts, ‘targeted’ parts of companies can provide. Identifying is the process of selecting the right customer component based on it attraction, influence, and company resources. Many segments can directed at a given time.

Position: Position is the process of developing a vision in the mind of the target section about a product or service. This step took place to attract attention a specific component of a product or service, which may lead to a purchase decision.

Case Example:

Daniel & Co. they produce a soap of beauty and fragrance. The company uses essential oils, flower components and small amounts of cleaning chemicals. Due to the intense competition for established soap brand, the company loses money due to low sales.

To make sure it delivers the right product, in the right category, in the right way, decided to use the STP framework.

Separation: In conducting further research, focusing on a variety of factors, the book of Daniel & Co. divide its market into the following categories-

• Young Adults (40%) - College students who like to try new, fashionable, economical products.
• Middle Ages (40%) - Active people who taste the best, natural products.
• The Oldest and Most Wise (20%) - People in leadership positions who use luxury products.

Identification: Daniel & Co. tagged part of the 'Middle Ages' as the company's current products

fits well in this section. Additionally, the section is attractive because it is large in size.

Position: Daniel & Co. put themselves in the right place to sell premium eco-friendly soaps.

Conclusion:

Companies categorize the needs of the customers and the services available. Their target part

they can change over time, therefore, they need to change their marketing strategies continuously.

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