The STP in marketing signifies Segmentation, Targeting and Positioning that is considered to be the effective method in Modern marketing. Segmentation involves segmenting the customers into different segments so that their needs and preferences can be understood. The marketing action will be taken in response to the market segments of the region. The segmentation will help the company to incorporate different marketing strategies to grab the attention of the potential customers.
The segments of the Chinese markets are done on the basis of the lifestyle, preference, demographics, psychographics, beliefs and value and behavior of the market. Furthermore, the audiences are broken down as per their age, sex, income level, profession, ethnicity and the geography (Etzel, Walker & Stanton, 2012). These factors matter when the business thinks of expanding its market worldwide. For instance, the baby milk products need to be launched in the Chinese market that has more kids or pregnant women. This will help the market to increase their sale as they will target the market that will have its potential buyers.
The targeting of the Chinese market sets the criteria size, difference, money, accessibility and the benefits involved. The criteria of the market must be large enough to penetrate. If the size of the market is small, the segments will be small resulting to smaller amount of targeted audience. Besides, the targeting should be directed to the dealers in China to make the products come within the reach of the customers. The difference between the segments should be limited so that there is a scope of profits from every segment (Reynolds, 2011). The segments achieved should derive certain benefits from the products. Product positioning is the last element of the STP process that determines the position of the product or the firm in comparison to other competitive firms. Positioning is applies to all levels of competition like product level, category level, corporate level and industry level.