Segmentation, Targeting, and Positioning, commonly referred to as STP, is a strategic approach in marketing that breaks down a broad market into smaller, more manageable segments to identify and reach the most valuable customers. Segmentation involves dividing the market into distinct groups of buyers based on various criteria such as demographics, psychographics, behavior, or geographic factors, each of which might require different marketing strategies or mixes. After the market has been segmented, targeting comes into play, which is the process of evaluating each market segment’s attractiveness and selecting one or more segments to enter. A company will assess the segments based on their size, growth potential, competitive presence, and compatibility with the company’s objectives and resources. The final step, positioning, involves crafting a unique image and identity for the brand or product in the mind of the target segment. This is done by developing a distinct marketing mix (product, price, place, promotion) that aligns with the segment’s needs and preferences, thereby differentiating the brand from its competitors and influencing the target consumer’s perception. The STP model is a cornerstone of marketing strategy as it allows marketers to be more focused and efficient in reaching their desired audience and fulfilling their specific needs.
