How to Use STP Marketing to Grow Your Business


Introduction to STP Marketing

STP marketing is the process of segmenting, targeting, and positioning to connect with a specific audience and market your business.

Segmenting your market will allow you to identify the target audience for your business and create a customized strategy that meets their needs. Targeting and positioning are the two other steps in the process that will help you maximize your efforts and create an effective marketing campaign.

In this guide, we’ll be discussing the basics of STP marketing and how it can help you grow your business.

What is STP Marketing?

STP marketing, or Segmentation, Targeting and Positioning marketing, is a method used by businesses to identify potential customers and define its products according to the needs of these potential customers. It helps businesses refine their message and create tailored offers that will be attractive to their target market. This marketing strategy is designed to maximize the appeal of a product to its intended audience.

In order for STP marketing to be successful, it relies on data-driven segmentation. This involves categorizing potential customers into groups based on criteria such as demographics (age, gender), psychographics (personality types) and lifestyle choices. The segmentation process provides insight into customer needs which can then be used to modify products or services accordingly.

Once the target audience has been identified, marketers need to consider how they will position their product relative to its competitors in order for it stand out in the marketplace. This part of STP focuses heavily on crafting effective messages that will resonate with consumers and create a competitive edge for brands in the eyes of prospective customers.

When completed correctly, STP Marketing can help businesses better serve their target audiences and drive more sales through increased relevance in advertising messages and improved conversions from tailored offers which meet consumer demands.

Benefits of STP Marketing

STP (Segmentation, Targeting and Positioning) Marketing is an effective way for companies to identify their target market and develop a marketing strategy tailored to their needs. Through STP Marketing, businesses can achieve advantageous ad placement, brand positioning and greater efficiencies that lead to improved profits.

There are numerous benefits of using STP Marketing in the development of an effective marketing strategy. By intentionally targeting specific customer groups, companies can create campaigns that are more focused and cost-effective compared to campaigns created on a broad scale. Companies can also tailor their products and services to meet specific customer needs – shaving down the amount of resources required in marketing activities that tend to be expensive for most businesses.

Additionally, with STP Marketing there is an increased opportunity for a company to gain a larger share of the customer’s wallet as they become aware of a business’s products or services they did not know they needed before being exposed to it. It also offers more precise measurement capabilities – allowing businesses to track customer actions at every point in the sales funnel which helps them gain insight into how their marketing tactics are performing and what areas need improvement or further investment. Ultimately, this type of data allows companies to strengthen customer relationships and create more profitable pathways over time.


As part of your STP marketing strategy, segmentation is used to target specific customer groups. This process allows businesses to divide their customers into distinct categories, each with their own characteristics and needs. By using segmentation, you can identify and target the right customers for your product or service and personalise your marketing messages accordingly. This can be a powerful tool for improving your marketing effectiveness.

Let’s look closer at segmentation and how it can help grow your business:

Identify Your Target Market

Knowing who your target market is, is one of the most important steps in creating an effective and successful marketing campaign. With STP (segmenting, targeting, and positioning) marketing you will be able to identify your most desirable customers more effectively.

Segmenting involves breaking up a large population of potential customers into smaller groups based on similar characteristics such as age, gender, location, income level and interests. This helps narrow down who are the most likely individuals to respond to your products or services.

Targeting is then honing in on which segment of your potential customers is best suited for the product or service that you have to offer. You can use demographic information collected during the segmentation process to help determine which groups will be the best prospects for your business.

Finally, positioning helps further define who you are trying to reach by positioning yourself in the marketplace as having something unique and beneficial compared to other competitors providing similar products or services. By clearly understanding what sets you apart from other businesses helps increase sales by attracting more qualified leads that will be interested in what you have to offer.

By using STP Marketing it will give you a better understanding of how to more effectively reach out and attract people that want what you have.

Analyze Your Market Segments

Whether you’re launching a new product, entering a new market, or trying to grow your business, it’s important to understand who your target customers are and what their needs are. This can be accomplished through a technique known as segmentation, targeting, and positioning (STP).

STP marketing is a three-step process used to analyze a market and differentiate products in order to better meet customer needs. First, companies must identify their target markets by dividing the market into different segments based on shared characteristics such as age, gender, income level, or lifestyle. Second, companies narrow down these segments by focusing on one that offers the greatest potential for growth or profitability. Finally, companies position their product within the chosen segment to make it stand out from its competitors.

Analyzing your market can be incredibly helpful when deciding which segments offer the most potential for profitability. During this stage of STP marketing you should be looking at the size of each segment as well as its spending power and competitive landscape. It’s also important to look at any special characteristics or needs of customers within each segment that could influence purchasing decisions or create opportunities for your product offerings.


Targeting is an essential component of an effective STP marketing strategy. With targeting, you can narrow down your audience and target specific types of consumers. This can help you create messaging that resonates with your target audience and can increase customer engagement.

Through targeting, you can also identify potential customers who may be interested in your product and tailor your marketing efforts to reach them.

Let’s discuss the importance of targeting in STP marketing and how to use it to grow your business:

Select Your Target Market

When creating a target market you should think about who are your most likely customers. To do this, engagement with your current customers is crucial. Speak to them and understand what solutions they are looking for from your product or service and then create a segmented profile of similar customers.

Your target market should be made up of smaller segments that share common characteristics, such as age group, location, occupation, income level, family size or purchase behavior. The more detailed the information you have about each segment, the better you can tailor your products or services to meet the needs of those potential customers.

Once you have identified who your ideal customer is and have broken them down into their segments it’s time to use STP marketing or Segmentation-Targeting-Positioning Marketing. This process requires three distinct areas of focus; each phase aiming to increase conversion rates by targeting those in each segment with appropriate content:

  • Segmentation: First analyze customer data collected from previous promotions and identify distinct groups within the market.
  • Targeting: Then assess which ones offer the most effective opportunities for profit margins by analyzing competitor markets and price points as well as trends in behaviour within certain segments that could affect demand for niche products or services offered specifically to them.
  • Positioning: Finally develop new content strategies tailored towards this targeted segment’s needs and interests while communicating key differentiators between our products/services and those of competitors through use of associated ads, social media campaigns etc that provide an incentive for visitors to purchase from our sites over that our competition’s.

Evaluate Your Target Market

Evaluating your target market is an important step of the STP marketing process. You need to determine who your potential customers are and what their needs and preferences are in order to best reach them with your products or services.

Start by doing research on the demographics of those that would be most likely to purchase your products or services. What is their age, gender, location, income level, education level, job title? Get as specific as possible – this will help you form a more accurate picture of who your target market is.

Along with understanding who they are, it’s also critical to know what motivates them. Are there any common pain points or desires that you can help provide solutions for? This will let you match their needs with the features and benefits of what you offer and tailor messaging that resonates with them.

Lastly don’t forget to consider any potential competition in the marketplace. Knowing who else may be targeting your audience can help inform how you set yourself apart from other options out there.


Positioning is a key part of STP (segmentation, targeting, and positioning) marketing. It’s all about making sure that your product or service is in the right place at the right time. Positioning is about creating a unique and meaningful message about your product or service that appeals to your target audience. It’s about differentiating your product or service from competitors in the same industry.

Let’s dive into the details and learn how to use positioning to grow your business:

Create Your Unique Selling Proposition

Once you are aware of your customer’s needs and you’ve determined how your unique offering meets those needs, it’s time to create a unique selling proposition (USP). Your USP is an attribute or benefit that sets your business apart from the competition and encourages customers to purchase from you. It communicates what you offer in an effective and concise manner.

Your USP must be both compelling and convincing to persuade customers to buy from you, match their needs and solve their problems. Creating a strong USP is not easy but depending on the nature of your business it can also be a creative challenge too. Look for ways to make something mundane sound charming – such as customer service that circles back quickly with solutions or shipping times that get products in customers hands faster than ever before.

Look beyond the product itself to fully understand how it offers value in comparison with competitors’ offerings. Think about how your product solves customer problems – this can help determine what words should be used in describing it so customers recognize the value right away. Make sure that distinguishes itself from competitors’ positioning messages by avoiding hints of similarity which should be avoided at all costs – even colors, symbols, terms or words have been known to backfire if ‘borrowed’ for use in creating a USP for another company.

Creating a memorable USP will help potential customers understand why they should choose you over your competition and ultimately increase sales by drawing attention to the real benefits of buying from you rather than somebody else.

Develop Your Positioning Statement

A positioning statement is a concise description of your target market, how you plan to position your product or service within that market and the benefits that set it apart from the competition. It is important for this statement to be clear and consistent, as it will provide direction for your marketing efforts. It should be positive and powerful, positioning you favorably in the minds of consumers.

Your position statement should include three key components:

  • Target customers – Who are you targeting?
  • Unique selling proposition (USP) – What makes you better than your competitors?
  • Beneficial value proposition – How will customers benefit by buying/working with your business?

Once you have identified these key points, it’s time to craft a short sentence or two to reinforce them. For example: “Our company is focused on providing quality products to busy professionals who need quick, reliable solutions that make their lives easier. We strive to offer superior customer service and an unbeatable price point that helps our customers get more value for their money”.

This positioning statement summarizes the target market of busy professionals, what sets the company apart from competitors (unique selling proposition) as well as benefits (value proposition) associated with working with them. Not only does this provide guidance for future decisions about marketing and operations, but it also serves as an essential tool for communicating with current and prospective customers about why they should choose your business over others in the marketplace.


Once you have fully understood segmentation, targeting and positioning, it is time to move onto the implementation. This means taking the theory and making it tangible. Implementation is the process of actively carving out a unique spot in the market for your business. It requires an understanding of the competitive landscape, an ability to stand out from the crowd, and a clear plan for how you can create and deliver value for your target customers.

Let’s start by looking at how to use segmentation, targeting and positioning to create a successful marketing strategy.

Develop Your Marketing Mix

Developing your marketing mix is essential in having an effective strategy for your business. The marketing mix includes the product, pricing, promotion and place components.

  • Product: Your product must meet the needs of your target market in terms of quality, design and features.
  • Pricing: Setting a price point that works for both you and the customer is key to successful sales. It is important to consider value when setting prices – customers need to feel like they are getting their money’s worth or they may be less inclined to make a purchase. You should also consider competition when setting prices – you don’t want yours to be too high compared with other businesses selling similar products or services.
  • Promotion: Promotion includes all forms of communication from advertising, public relations and personal selling through digital channels such as email and social media platforms. It’s important to ensure your message is clear and concise so potential customers are able to identify with it in a positive way.
  • Place: Having the right distribution channel enhances customer service levels by ensuring availability of products or services desired by customers at their convenience. Good logistics management results in efficient supply chain operations at all stages from production, distribution and delivery preferably just in time. The location where you choose to promote any goods or services should also be considered based on your target market’s preferences as well as convenience factors such as cost-effectiveness and durability of goods during shipment or delivery procedures if necessary.

Measure Your Results

In order to determine how successful your STP marketing efforts have been, it is important that you measure your results. There are several ways to measure the success of your efforts, such as measuring customer loyalty, website traffic and conversions, sales leads generated, or brand awareness.

Additionally, it is important to measure the overall return-on-investment (ROI) of your campaigns.

Measuring ROI will give you a good indication of whether you are meeting the goals that you have set. It can be challenging since there are so many different factors involved in achieving objectives with STP marketing. However, tracking key performance indicators (KPIs), such as website visitors and leads generated, will help you get a better understanding of the overall effectiveness of your campaigns. Additionally, setting up automated tracking and reporting systems can help ensure that you always have an up-to-date overview of how your campaigns are performing.