What is STP Marketing



STP marketing stands for segmentation, targeting and positioning. It is a marketing strategy used by businesses to identify, select, and target customers for their products or services. It helps businesses focus their resources on customers that are likely to be interested in their offerings, as well as tailor their messaging and marketing efforts to appeal to those particular customers.

By utilizing STP marketing, businesses can improve their marketing results and maximize their ROI.

Definition of STP Marketing

STP Marketing – or Segmentation, Targeting and Positioning – is an approach to marketing that considers theses three elements when defining a product’s position in the marketplace. It is designed to help a business better understand their customers’ needs and wants, better segment their markets and better understand when to apply a different communication or positioning message.

The following definitions help provide further information on STP Marketing:

  • Segmentation is the process of gathering data related to characteristics such as age, profession, gender, income, interests and more which can then be used to divide your customers into distinct market segments;
  • Targeting refers to aiming your product towards those segments with which it has the greatest potential;
  • Positioning defines the value of the product to those target segments by communicating how it will benefit those consumers.

With segmentation, targeting and positioning in place within a targeted market, businesses can provide specific offerings that address customer needs on an individual level. This enables businesses to maximize sales by focusing on target segments instead of simply targeting all potential customers.


Segmentation is a key strategy in STP Marketing (Segmentation, Targeting, and Positioning). Segmentation is the process of dividing a market into subgroups of consumers, based on shared characteristics, needs, or behaviours. It is a crucial step in the STP process that allows marketers to identify the best target audience and tailor their message accordingly.

In this section, we’ll look at how the segmentation process works and its importance in STP marketing.

Identifying target market segments

One of the key aspects of successful marketing is the ability to identify distinct target market segments and create strategies tailored to each segment. Segmentation, Targeting, and Positioning (STP) is a process that businesses use to break down their customer base into specific categories so that they can better meet their needs.

The STP process includes analyzing current customer data, identifying potential target customer groups based on demographic factors such as age, gender, socio-economic status, geographic location, and lifestyle. Once potential segments have been identified, marketers will then examine customer attitude towards particular products or services and analyze the similarities between customers within those segments. This helps marketers gain an in-depth understanding of the behavior and desires of these customers so that they can create tailored communication strategies aimed at making them more likely to purchase.

Once target customer groups have been identified through STP analysis, marketers should then position their product within each segment to appeal to their specific needs. This involves creating a brand personality that resonates with customers in that segment and developing appropriate messaging and product features that appeal directly to them. By utilizing effective segmentation techniques based on deeper insights into customer behavior, businesses can optimize their marketing efforts by efficiently targeting the most successful niche markets with

  • specific sets of messages
  • product offerings


Evaluating target market segments

Evaluating target market segments is an essential part of the STP process. When assessing different groups of potential customers, marketers consider various factors such as size and potential sales revenues, customer loyalty, and purchase patterns.

In evaluating the target market segments, there are two primary strategies – qualitative and quantitative approaches. Qualitative methods measure customer preferences and satisfaction through qualitative techniques such as one-on-one interviews or focus groups of consumers. This data helps marketers to gain a stronger understanding of what their prospective customers prefer in terms of product features, desired benefits, etc.

Quantitative techniques are used to assess the size and potential sales revenue generated by each segment. Marketers can use data to estimate how many people could be found in each segment, how much money is being spent by each group on average per year, or even which regions would be most receptive to an advertising campaign for a given product.

By obtaining this type of information about target market segments through both qualitative and quantitative analysis, marketers can gain valuable insights into the preferences and behaviors of their potential customers. Once the information is chosen from both analyses has been gathered and analyzed carefully, effective strategies can then be developed towards reaching out to these segments effectively in order to maximize sales revenues.


Segmentation, targeting, and positioning (STP) is a marketing approach that breaks down the total market for a product or service into smaller, more manageable segments. By segmenting the market and targeting specific segments, businesses can then position themselves to better communicate with their target audience.

In the next section, we’ll look at how businesses can use STP to target the right customers.

Selecting appropriate target markets

Selecting appropriate target markets is the first step of STP marketing. By narrowing down your focus and deciding which customers to target, you are better able to create a tailored marketing plan that will reach the right people and bring in customers who truly value your product or service.

During this process, you must analyze both external and internal factors that may impact which customers will be most beneficial for your business. Consider the characteristics of existing or potential users, including:

  • Demographics such as age, gender, lifestyle, income level and location.
  • Psychographics such as behaviors, attitudes and social influence.

Beyond defining the types of individual consumers you should target from a broad perspective, you must also consider how best to reach them directly through targeted advertisements and campaigns. Dedicate resources towards understanding where your current and potential customers spend their time—whether that’s online on social media sites or offline at shopping malls—in order to make smarter decisions about how to allocate resources for reaching those individuals. When selecting appropriate target markets, assessing both demographics and psychographics along with other market research is essential for creating an effective strategy that gets results.

Developing positioning strategies

Targeting is a key part of an effective STP strategy. It involves identifying and evaluating the various market segments in which you can compete, and developing positioning strategies for each segment.

The first step is to identify the target market segments you want to focus on. This is done by looking at factors such as age, gender, income level, occupation, interests and lifestyle. Once identified, be sure to also consider the size of each segment – you may find some smaller segments that offer more potential for growth than larger ones.

Once you have identified target markets for your product or service, the next step is to evaluate those markets in order to determine which ones are most attractive for your business. Considerations here include the degree of competition in each market, potential profitability and feasibility of entry into new markets. Also remember that consumer taste and preferences are constantly evolving; make sure your positioning strategies are always keeping up with trends and changes in consumer behavior.

Finally – after considering these different factors – develop positioning strategies tailored towards each segment that best reflect your brand’s unique offering and value proposition relative to competitors’. Here, it’s important to consider how effectively you can differentiate yourself within each market segment through pricing, promotion and product features. With a well-crafted STP targeting strategy at hand – focused on what makes your product or service stand out from others – you’ll have a great foundation from which to launch profitable marketing campaigns!


Positioning is a critical part of STP (Segmentation, Targeting and Positioning) marketing. It involves creating an image or identity in the minds of consumers for your product, brand or service. Positioning is all about differentiating your product or service from that of your competitors, highlighting the unique benefits and features that set you apart.

In this article, we’ll discuss the importance of positioning in STP Marketing.

Developing positioning strategies

Positioning can best be defined as the process of designing a company’s offering and image to occupy a distinctive place in the minds of the target audience. Through the use of communication tools such as advertising, public relations, direct marketing and personal selling, companies attempt to create an emotion or feeling about their brand. Positioning involves crafting a message that communicates the unique benefits of their product or service and establishes a strong identity in comparison with their competition.

An effective positioning strategy requires careful thought and analysis. Businesses must accurately assess their market potential and analyze their current positioning strategies in relation to their competitors. Companies should then consider which attributes are most important for differentiating their product, who the key decision makers are and what channels will best reach them.

The next step is to develop creative campaigns that leverages all available communication tools. Finally, companies should measure the results of each strategy by monitoring brand awareness and sales performance over time.

By developing targeted positioning strategies on top of prior research and analysis, businesses can ensure that they communicate meaningful messages that generate lasting value for both customers and shareholders alike.

Crafting the right message

Positioning refers to how you want to establish your brand in the eyes of consumers – what makes it unique and how will it benefit them? Based on the segmentation process and the target market you have chosen, crafting the right message to reach those potential buyers is a crucial step.

The goal is to create an emotional bond between customers and your product that stands out from the competition. This requires careful consideration of everything from packaging and labeling to product features, price points, quality, benefits and more.

In essence, positioning should reflect an understanding of what you are offering (product or service) and what customers are likely motivated by. Depending on your option for segmentation (demographics, psychographics or behaviorial), you will have different target consumer groups that expect different things from a product or service. Before launching a new marketing campaign, be sure to make sure you have done your research thoroughly by considering all possible factors – including competitors’ strategies – that could affect customer perception of newly presented products or services.


Segmentation, Targeting and Positioning (STP) is a framework used by marketers to identify customer needs and develop a strategy that meets those needs. To be able to implement an effective STP marketing strategy, it is important to understand each element of the framework.

This section will cover the process of implementation and how to use it to your advantage:

Establishing an effective communication plan

Communication is a vital step in implementing an effective STP marketing strategy. A communications plan should be developed to ensure that the right messages are reaching the right people. This plan should include everything from media relations to direct marketing campaigns, as well as how to handle social media presence and advertising. To make sure that the message is always consistent with the company’s brand, it’s important to demonstrate a shared vision between every team involved in creating the campaign. It’s also essential to build relationships with stakeholders, such as customers, media outlets and influencers, by offering useful and interesting content alongside promotional campaigns.

Once an effective communication plan has been established, it’s time to consider what outcomes you hope to achieve from it. Thoughtful objectives can make a big difference in terms of evaluating success – for example, tracking customer engagement levels or sales figures can reveal how your efforts have impacted their buying behaviors over time. Make sure to measure progress against these objectives at regular intervals and use these insights to refine strategies over time.

Developing a pricing strategy

An important part of successful STP marketing is the thoughtful development of a pricing strategy. Price is an essential element of any marketing plan, and success depends on getting the price just right. Underpricing your product may lead to increased profits since fewer people will shop around for a better deal, but this strategy does not generate long-term customer loyalty. On the other hand, overpricing your product can lead to sales losses as customers will seek out better deals elsewhere.

Many companies use a combination of factors when developing a pricing strategy, such as using price skimming or market penetration strategies as well as segmentation-based tactics. Price skimming takes advantage of customer willingness to pay a premium for goods that are new and unique. Market penetration strategies lower prices in order to gain market share among target customers. With segmentation-based strategies, businesses set different prices for different audiences based on the perceived value or demand in each market segment. Doing so allows them to appeal to different customer segments while at the same time preserving their brand’s pricing integrity and value perception among all customers.

Ultimately, setting an effective price requires careful consideration of costs and decision on how you wish to position your products in the marketplace – be it with high-end prices that may limit sales but attract more affluent buyers; low prices with aggressive promotions; or some combination thereof – so that revenue goals and objectives are achieved without sacrificing total revenue over time due to unsustainable prices or discounting practices designed for short-term gain only.


STP stands for Segmentation – Targeting – Positioning and sums up the process of identifying, segmenting, targeting and positioning a product or service in order to meet the needs of specific customers with maximum efficiency.

Through STP marketing, companies are able to better focus on their target markets and deliver products that meet their needs with great precision. As such, STP is an effective strategy for competing in today’s highly competitive markets where customers have access to an ever increasing array of choices.

The key takeaway here is that companies need to focus their efforts on a small set of target markets that they can thoroughly understand and serve effectively; they should leverage this understanding toward the development of unique marketing campaigns tailored toward those specific segments of customers and ensure that their promotion can be delivered to each segment consistently across different channels. Doing so will help optimize resources while maximizing return on investment (ROI) and helping them stay ahead of competitors.