Which Type of AC is best for Home?

July 7, 2023by J & J Services

J & J Heating & Air is a local business that specializes in providing quality products for the home. For over 18 years, we have proudly served San Joaquin County, Sacramento County, Stockton and the surrounding areas with honest and professional technicians. Our team of certified technicians can address all your heating, cooling, and plumbing needs.

In this blog post, we will discuss the importance of Segmentation, Targeting and Positioning (STP) in marketing efforts. We will provide an overview of STP process, its definition and benefits. We will also discuss the steps involved in the STP process and how it can help businesses reach their goals.

Purpose of Article

The purpose of this article is to provide an overview of STP process and discuss its importance in marketing efforts. It will also provide a step-by-step guide on how to implement STP for businesses looking to improve their customer retention and loyalty as well as increase their profitability.

Overview of STP Process

Segmentation, targeting and positioning (STP) is a marketing strategy used by businesses to identify potential customers and create tailored messages that appeal to them. The goal is to target specific segments of customers who are more likely to purchase a product or service based on their interests or needs. The process involves segmenting the market into various groups based on demographics, psychographics or behaviour; targeting specific segments; creating positioning strategies; implementing these strategies; evaluating them; adjusting them if needed; and finally re-evaluating them for success.

Definition of STP

STP stands for Segmentation, Targeting and Positioning. It is a marketing strategy used by organizations to identify their target market and the positioning of their product or service in order to maximize sales and profits. This strategy involves dividing a large market into smaller segments, targeting one or more of these segments, and then positioning the product or service in such a way that it will appeal to the targeted segment(s).

Description of Segmentation, Targeting and Positioning

Segmentation is the process of dividing a large market into smaller, more homogeneous groups based on certain characteristics such as demographics, geography, lifestyle, interests, etc. The goal is to identify distinct customer groups with similar needs and preferences that can be targeted with tailored messages.

Targeting involves selecting one or more segments to focus on. This involves analyzing each segment’s potential for profitability and making an informed decision about which segment(s) to target.

Positioning is the process of creating an image or perception of a product or service in the minds of consumers that sets it apart from its competitors. It involves developing a unique value proposition that speaks directly to the needs and wants of the target market.


For example, if an organization wanted to target people who are interested in purchasing home products made from quality materials they could use segmentation to divide their larger market into smaller groups based on factors such as age, gender, location, income level, etc. They could then use targeting to select one or more segments that have the highest potential for profitability. Finally they could use positioning to create an image or perception in the minds of consumers that their products are superior in quality compared to their competitors’ products.

In this example STP would be used by the organization to identify their target market and create an effective marketing strategy that will help them reach those customers and maximize sales and profits.

Marketing strategy to identify target market & position product/service to maximize sales & profits. Segmentation divides large market into smaller groups, targeting selects segments, positioning creates a unique value proposition.

Benefits of STP

The Segmentation, Targeting and Positioning (STP) process is an essential tool for any business looking to optimize their marketing efforts. By allowing companies to focus their resources more efficiently on specific customer segments, STP can help businesses maximize their return on investment (ROI). This section will explore the various benefits of using the STP process.

Increased Efficiency in Marketing Efforts

One of the primary benefits of using the STP process is increased efficiency in marketing efforts. By segmenting customers into groups with similar needs, businesses can target their messages and promotions more effectively. This allows them to reach more potential customers while spending fewer resources than if they were targeting all customers indiscriminately. Additionally, by focusing on specific customer segments, businesses can tailor their messaging to better appeal to those segments and increase response rates.

Improved Customer Retention and Loyalty

Another benefit of using the STP process is improved customer retention and loyalty. By understanding each customer segment’s wants and needs, businesses can create targeted campaigns that are more likely to engage those customers and keep them coming back for more. Additionally, by positioning themselves as experts in a particular market or product category, businesses can build trust with their customers and create a loyal following that will continue to purchase from them over time.

Increased Profitability

Using the STP process also helps businesses increase profitability by focusing on high-value customer segments that are most likely to purchase their products or services. By targeting these high-value segments, businesses can optimize their sales efforts and increase their ROI by selling more products or services at higher prices than they would be able to achieve with a broader approach. Additionally, by increasing customer loyalty through targeted messaging and promotions, businesses can generate repeat purchases from existing customers which further increases profitability over time.

Enhanced Brand Awareness

Finally, using the STP process helps enhance brand awareness among target customer segments by creating an emotional connection with those customers through tailored messaging and promotions that speak directly to them. This emotional connection helps create an affinity for the brand which leads to increased brand loyalty over time as well as word-of-mouth referrals from satisfied customers which further increases brand awareness among other potential customers who may not have been exposed to it before.

Increased Efficiency
Focus resources on specific customer segments to maximize ROI.
Improved Customer Retention & Loyalty
Create targeted campaigns to engage customers and build trust.
Increased Profitability
Target high-value customer segments and optimize sales efforts.
Enhanced Brand Awareness
Create an emotional connection with customers through tailored messaging & promotions.

Steps in the STP Process

The STP process, or Segmentation, Targeting and Positioning process, is an important tool for businesses when creating a marketing strategy. The goal of the STP process is to identify key customer segments within a larger market that can be targeted with specific messaging in order to create a unique positioning in the market. As such, the STP process involves several steps that must be followed in order to ensure success.

Step 1: Market Segmentation

The first step in the STP process is market segmentation. This involves breaking down the larger target market into smaller groups of customers who share similar needs and wants. This can be done on the basis of demographic characteristics such as age, gender, income level, or geographic location; psychographic characteristics such as lifestyle, values, attitudes; or behavioral characteristics such as purchase frequency or loyalty.

Once these segments have been identified, it is important to analyze them further in order to determine which ones are most likely to respond positively to a company’s products or services. This analysis should include looking at each segment’s size and growth potential, its purchasing power and willingness to pay for products or services, and its overall profitability.

Step 2: Market Targeting

Once the most promising customer segments have been identified through market segmentation, it is time to move onto the next step: market targeting. During this step, companies must decide which segments they will focus their efforts on. Generally speaking, companies should focus on those segments that offer the greatest potential for growth and profitability.

In order to make this decision effectively, companies should consider factors such as how well their product or service meets the needs of each segment; how competitive their offering is compared to other offerings in the marketplace; and whether they have the resources necessary to effectively reach out to each segment.

Step 3: Market Positioning

The next step in the STP process is market positioning. During this step, companies must define what sets their product or service apart from competitors’ offerings. This involves creating a unique value proposition for each target segment by emphasizing certain features or benefits that will appeal specifically to that group.

Positioning also involves developing a brand identity that resonates with each target segment—this includes choosing an appropriate name and logo as well as crafting key messages that emphasize why customers should choose one company over another.

Step 4: Implementation and Evaluation

Once a company has developed an effective positioning strategy for its product or service offering, it must then implement it across all channels (e.g., advertising campaigns). It is important that companies track and measure how successful their campaigns are with each target segment so they can adjust accordingly if needed.

Step 5: Adjustment and Re-evaluation

If after implementation companies find that certain aspects of their positioning strategy are not working as well as expected (e.g., certain messages are not resonating with customers), then adjustments may need to be made in order for it to be more successful. Companies should take this opportunity to re-evaluate their positioning strategy by conducting additional research and testing different approaches until they find one that works best.

Step 6: Finalizing the Plan

Once all adjustments have been made and tested successfully, companies can finalize their positioning plan by creating detailed plans for implementation across all channels (e.g., advertising campaigns) and setting measurable goals (e.g., increased sales). They should also create contingency plans in case something goes wrong during implementation so they can quickly adjust if needed.


J & J Heating & Air has been a leader in the heating and air industry for over 18 years. We understand the importance of using segmentation, targeting, and positioning (STP) to maximize our marketing efforts and increase profitability. Our team of certified technicians is committed to providing our customers with quality products and services that meet their needs.

The Benefits of STP

Using STP can provide numerous benefits to any business, including increased efficiency in marketing efforts, improved customer retention and loyalty, increased profitability, and enhanced brand awareness. Additionally, the process can help businesses better understand their target market and create products or services that are tailored to their needs.

The STP Process

The STP process consists of six steps: market segmentation, market targeting, market positioning, implementation and evaluation, adjustment and re-evaluation, and finalizing the plan. Each step is important to ensure that businesses are able to effectively reach their target audience and maximize their profits.

At J & J Heating & Air we strive to provide our customers with high-quality products and services that meet their needs. We understand the importance of using STP as part of our overall marketing strategy in order to maximize our marketing efforts while ensuring customer satisfaction.

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