Segmentation, Targeting, and Positioning (STP)

The STP model, Segmentation, Targeting, and Positioning is a foundational framework in marketing strategy. It starts with identifying distinct customer segments, selecting which ones to target, and then crafting messages that position your product uniquely in the minds of those customers.

Segmentation divides your market based on demographics, interests, geography, and behaviour. Targeting focuses your marketing efforts on the segment that is most likely to convert. Positioning involves creating a distinct and appealing image for your brand or product in the consumer’s mind.

For example, Apple segments its audience by income and lifestyle, targets creative professionals and tech-savvy consumers, and positions itself as an innovator and design leader. Small businesses can apply STP to streamline resources and deliver focused, effective campaigns.

Using STP results in higher ROI, better customer relationships, and clearer brand differentiation in crowded markets.