What is STP and How Does it Work


Have you ever wondered why some products tend to outsell others in the same category? It isn’t necessarily because of the product’s quality, but more often than not it’s because of how well the company behind it understands and executes their STP (Segmentation, Targeting, and Positioning) strategy.

In this blog post, I’ll explore what STP is and how it works to help your business increase its sales. So buckle up, because it’s time to get into the diverse world.

Introduction to STP

Segment-Target-Position (STP) is a marketing model used to help companies optimize their strategies for product launches and existing products. This model involves grouping customers into segments, targeting customers within each segment, and positioning products in relation to competitors. STP stands apart from other models because it focuses on each step of the process individually and not as a single cohesive plan.

Developed in the 1970s, STP is a tried-and-true marketing model that is still regularly used today. By understanding how this model works, you can use STP to create an effective strategy for your business that will help increase sales and promote brand loyalty.

This article will cover the basics of STP by introducing what it is, why it’s important, and how you can use it to design successful products and services. Additionally, we’ll explore the three steps of this process – segmentation, targeting, and positioning – in more detail so that you can create an effective strategy using this method.

What is STP?

Strategic Target Positioning (STP) is a marketing term that refers to the process of positioning products relative to their competitors in order to gain a competitive edge in the market. It involves taking into account not only the product itself, but also how it compares with similar products offered by competitors. The goal of this process is to create an image or impression in the minds of consumers that differentiates one product from another so it will be preferred over its competitor’s offerings.

STP typically includes:

  • Analyzing existing customer segments and determining which are most likely to purchase your product.
  • Assessing what attributes make your product unique relative to competitors.
  • Developing pricing and communication strategies that appeal to these target segments.

This process involves researching competitors and understanding what factors have driven their success, as well as studying existing customers in order to determine exactly what features they value most highly. Ultimately, the goal is for brand positioning strategies, communication efforts and pricing points to be tailored specifically for target markets with the aim of maximizing profits.

Benefits of STP

The use of STP as a marketing tool offers a range of benefits. It helps marketers avoid overspending and wasting money on targeting efforts that reach people who may not be interested in their products or services. Additionally, it can help businesses focus their strategies on reaching the right audiences and increase their return on investment (ROI).

By using STP, businesses can save time while still targeting the right market. It provides an organized approach to defining target customer segments with relevant market attributes, reducing undesired market overlap. This saves businesses both time and money as well as allows them to reach the right customers more effectively than traditional marketing tactics.

STP also helps marketers identify which customer segments have similar interests, needs and desires when it comes to their products or services. This helps them craft more targeted campaigns that focus on addressing specific customer issues rather than just promoting a product/service in general terms. STP also allows them to create campaigns that appeal to specific customer personas prior to initiating promotional activities which are more likely to yield increased sales results in the long run.

How STP Works

STP stands for Segmentation, Targeting, and Positioning. It is a strategy used by organizations to break their markets into different segments, target particular markets to appeal to, and position themselves within those markets. The goal of STP is to make sure that an organization’s marketing mix is tailored to the target customer’s needs.

This process of segmentation, targeting and positioning begins with market segmentation. This involves breaking down the overall market in a meaningful way in order to identify customers with similar needs who can be treated differently with customized marketing messages. The organization then identifies particular segments they wish to target which they think they can reach most effectively while generating profit growth. Finally, the organization creates positioning strategies in order to differentiate their product or service from competitors and reinforce it in the minds of potential customers so that it is top-of-mind when those customers make their buying decision.

The STP process can help organizations make sure that resources are being allocated efficiently toward achieving actual business objectives, such as increasing revenue from a specific customer group or reducing cost per sale from another group of customers. All strategies should be related back to the overarching business goals set out by senior leadership and supported by data-driven research rather than relying on assumptions about what will work best for each market segment.

STP Components

STP stands for Segmentation, Targeting and Positioning, which is a process used to identify who should be the target of a company’s products and services based on their attributes. This process involves three distinct steps which together help companies create customer-focused strategies in order to gain a competitive advantage in the marketplace.

  • Segmentation: The process of segmentation starts by breaking down the customer base into different customer segments based on similar needs, wants and characteristics including age, gender, income level and interests.
  • Targeting: Targeting involves narrowing down the customer base by analyzing each segment’s individual characteristics and preferences. This allows companies to pinpoint which segment is profitable and decide where resources should be focused. It also helps identify who are the most likely buyers of a product or service.
  • Positioning: Positioning is about creating an image for the product or service that resonates with customers in each targeted segment. Companies must understand how their product or service stands out from competitors and make sure it is marketed appropriately so that customers will recognize it. The main idea is to create an accurate picture of what sets their product or service apart from others so customers will be drawn to it.

STP Configuration

The process of configuring a Switch to recognize and forward packets towards a given port based on their Media Access Control (MAC) address is known as Switch Tabling Protocol (STP) configuration. To create a network, one must determine the number of switch ports required and the types of devices that will be connected, such as computers or printers. The switch port must be assigned an IP address in order for it to work correctly within your network.

Once the type of devices, IP addresses and switch ports have been determined, it is time to configure STP protocol on each switch port. This can be done using either manual or automatic methods. The manual method requires assigning MAC addresses, or media access identifiers, manually to each port on the switch. This is tedious and complex in larger networks with multiple switches as it becomes necessary to configure different instances of STP on each device in the network if more than one device is connected to a single port.

The second method for configuring STP is automatic; this is often referred to as Rapid Switch Tabling (RST). RST requires no manual configuration and requires minimal setup time. Each device in the network sends its own information packet known as Bridge Protocol Data Units (BPDUs). The switches use BPDUs with predetermined algorithms to determine how they should respond to an incoming packet and forward it accordingly. In other words, RST automates the process of creating logical networks; this helps save time and makes building networks much easier than manual methods require.

Troubleshooting STP

Troubleshooting STP on large networks can be a challenging task, as there are many different elements that need to be checked in order to ensure proper functionality. The most important element is usually understanding the network design and topology. It is also helpful to have a clear picture of how switching works, as this can help one understand how the different resources are connected and which ports should be blocked or enabled.

When addressing any STP-related issues, it is important to determine whether the issue is related to a particular port or all ports on the switch. Problems found at single ports might indicate a cabling issue – in such cases replacing the existing cable with another may solve the problem without needing changes to any of the settings. Additionally, if there is interference from another device at that port address it should be removed as well, especially if it’s of similar capability.

If the problem seems to affect multiple ports on a switch at once then it might be indicative of incorrect setup or configuration – in such cases checking that all settings are correct and making sure they match what would be expected according to STP protocol can assist with troubleshooting. Additionally checking for redundant connections between devices as these can also cause problems that affect more than one device at once as well. Finally inspecting debugging information from either local log files or syslogs from other switches within a network may lead one towards further identifying sources for possible problems within an otherwise large topology.


In conclusion, STP can be an invaluable tool to help businesses of all sizes better understand the marketplace and segment their customers. The three steps in the STP process – Segmentation, Targeting, and Positioning – enable organizations to better tailor their communication strategies to different customer groups and create more customized messages. By using STP effectively, businesses can reach the right audience with the right message for maximum appeal and maximum return on investment.