Market Segmentation, Targeting, and Positioning (STP)

This framework allows businesses to identify the right audience and tailor their strategies for maximum impact.

• Segmentation:
  • Dividing the market into smaller, homogenous groups based on:
    • Demographics: Age, gender, income, education, occupation.
    • Geography: Region, city size, climate.
    • Behavior: Purchase habits, brand loyalty, usage rate.
    • Psychographics: Lifestyle, values, attitudes.
• Targeting:
  • Evaluating segments based on size, growth potential, accessibility, and alignment with the business’s capabilities.
  • Choosing a targeting approach:
    • Mass Marketing: Broad appeal to all segments.
    • Niche Marketing: Focusing on a small, specific segment.
    • Differentiated Marketing: Tailoring strategies for multiple segments.
    • Individualized Marketing: Hyper-personalization for specific customers.
• Positioning:
  • Defining the unique value proposition (UVP) that distinguishes a product from competitors.
  • Creating a compelling brand message that aligns with the customer’s needs and aspirations.