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Segment, Target & Position (STP)

Note: Use the research that you have completed previously for this section. 

1. Segment- who are potential buyers of this product? 

2. Target- who will you pursue? 

  • This should be decided by which segment your product would appeal to the most, and if they have the means to buy your product. 
  • Describe your target market segment in detail by using demographics, psychographics, geography, lifestyle, or whatever segmentation is appropriate.
  • Why is this your target market?
  • How large is it?

3. Position- What is the position that you want in the customers mind and how will you achieve that? 

  • Positioning is designing a product or service that the targeted market sees as distinct and valuable when compared to competitors' products. (4 P's above) 

Three ways to position a product:

  • Unique - this is the only one of its kind
  • Difference - e.g., More than twice the speed, or more attachments, etc.
  • Similarities - e.g., Same as ______ but at a lower price. 

What is this telling your targeted segments? Should you rethink anything?

  1. How will you communicate with the market?
  2. What is your value proposition - why is it better than your competition?
  3. What is the evidence that it will be successful?

Questions you should answer within your business plan:

  1. How do you promote your product in the market? To whom?
  2. What is the position you will go after in the market?
  3. What is your value proposition - why is it better?
  4. What is the evidence that it will be successful?
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