In order to grow your eSports business, you have to aim at the right market. So, instead of trying to convince everyone you meet to become your customer, you need to focus specifically on your target market and the STP(segmentation, targeting, and positioning) model can help you achieve that goal . STP is the marketing concept you need to discover who your customers are and this will help you to target the market that best suits you. Following the STP model which is an effective strategy will assist you in making your marketing endeavors more fruitful. Let’s now break down the acronym STP by understanding the meaning of the different key parts.
Segmentation marketing is an approach that can greatly benefit your company as well as provide advanced services to suit that particular segmentation. So you would need to select the specific segmentation into whichever eSport it suits. There are different ways in which to segment your target market, we will now discuss four useful methods you need to consider.
- Demographic: Firstly, you can segment consumers by using their personal characteristics such as gender, age, weight, height etc. For example, according to the analysis, the number of male players is higher than female players.
- Geographic : Secondly, although the esport players you may choose to use are from different areas, there is no gap between the region and distance of players who which to become part of the eSport industry.
- Psychographic: Thirdly we need to consider various personalities and lifestyles we may come into contact with. This is how we are able to analyze and predict whether a person has the potential to become an eSport player or not.
- Behavioral : Fourthly, according to the behavior of a person, we are also able to perceive if they will be loyal to the eSport industry or not? Moving on, what benefits do players look for from eSport?
The next step is segmentation targeting in order to reach a suitable profit margin. Targeting is essential for the STP marketing process. However, Return On Investment(ROI) is a major segmentation concern regarding profitability. For this reason, we need to analyze the potential growth of each segmentation carefully, and run a comparison check between each of these aspects.
According to the analysis, the number of eSport male players is higher than female players. Using this data, we will then be able to organize a special project in which to promote eSports within the female market in order to attract more female players to join the industry. If the number of payers increases then so to does the number of viewers. In turn, once the number of viewers increases, so to will the number of sponsors. The final result will be increased revenue from sponsor investments.
The final step is positioning. Here, you would need to figure out how you are going to incorporate segmentation into the eSport industry. The most important question that you would need to ask yourself is, “Why should consumers become eSport players?”. To answer that question, you need to consider the following 3 steps
1. Unique Selling Proposition (USP) :
Aside from any financial gain involved, an additional benefit for the eSports brand is legitimacy. A useful USP method is arranging regular competitions in which participants receive a prize as a reward. This generates revenue which enables the brand to advertise to a greater extent in order to generate further revenue.
2.Value Proposition :
To enhance Value Proposition, you need to create a brand that can promote your UPS to potential players alerting them to your presence in the eSports industry. When you hold regular competitions with prizes, you show players that participation is a key step in going pro.
3.Differentiation Strategy :
At this stage, players should be able to associate your brand with prize-giving competitions. Players can then differentiate between other leagues or brands in the eSports industry. Their thoughts might flow along this line, “If I choose to play in your league, I might have the opportunity to go pro.”
The esports vibe is catching on among the masses and the opportunity to become involved is ever increasing. So this is a situation in which only those who have prepared in advance, will gain the upper hand. For this reason, proper utilization of the STP model will challenge your ability to both analyze and think clearly about your overall approach to marketing.