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STP Strategy (Segmentation, Targeting, Positioning)

💼 Business By CampusDown Wiki Editorial Team Last updated
Quick answer: STP divides a market into similar customer groups, selects which to serve, and builds a distinct place for the brand in those customers' minds.
Contents
  1. 1. Segmentation
  2. 2. Targeting
  3. 3. Positioning
  4. 4. References

Segmentation

Smith presented market segmentation as an alternative to product differentiation. Bases include geographic, demographic, psychographic and behavioural variables (usage occasion, benefits sought, loyalty). Useful segments are measurable, accessible, substantial, differentiable and actionable.

Targeting

  • Undifferentiated: one offer for the whole market
  • Differentiated: separate offers for several segments
  • Concentrated: focus on one or a few segments
  • Micromarketing: local or individual tailoring

Segments are evaluated on size and growth, structural attractiveness and fit with the firm's objectives and resources.

Positioning

Ries and Trout argued that positioning is what you do to the mind of the prospect. Perceptual maps reveal gaps; points of difference and points of parity are summarised in a positioning statement and executed through the marketing mix.

References

  1. Smith, W. R. (1956). Product differentiation and market segmentation as alternative marketing strategies. Journal of Marketing, 21(1), 3-8.
  2. Ries, A., & Trout, J. (1981). Positioning: The Battle for Your Mind. McGraw-Hill.
  3. Kotler, P., & Keller, K. L. (2016). Marketing Management (15th ed.). Pearson.
  4. Kotler, P., & Armstrong, G. (2018). Principles of Marketing (17th ed.). Pearson.

Reports and materials that use this theory (Korean)

There are no materials dedicated to this theory yet, but you can search related reports in the CampusDown library (Korean).

Find more reports · Search 'STP 전략' on CampusDown →
Marketing Mix (4Ps and 7Ps)The marketing mix: Borden's concept, McCarthy's 4Ps (product, price, place, promotion), Booms and Bitner's 7Ps for services (people, physical evidence, process), Lauterborn's 4Cs, and how to analyse a firm's mix.💼 BusinessSWOT AnalysisSWOT analysis explained: strengths, weaknesses, opportunities and threats, the TOWS matrix, links with Porter's Five Forces and PEST, origins, criticisms, and how to write a SWOT report.💼 Business3C Analysis3C analysis explained: a strategy tool that examines Customer, Competitor and Company to find key success factors. Covers Kenichi Ohmae's strategic triangle, questions for each C, links to SWOT and STP, and a worked example.💼 BusinessAdams' Equity TheoryAdams' equity theory explained: comparing one's ratio of outcomes to inputs with others, reactions to under- and over-reward, six ways people restore equity, and its link to organisational justice.💼 Business

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This article was last updated on October 15, 2026. It is based on widely recognized original works and textbooks; when citing it in a paper, please check the original sources listed in the references.