STP Marketing (STP)
STP marketing is a three-stage framework: segment, target, position. It brings strategic discipline to who you serve and what you want them to believe.
STP marketing is a framework that structures how a brand decides who to serve and how to position itself: by segmenting the market, targeting specific groups, and defining a position for each.
What STP Marketing Means in Marketing
Most markets are not one audience. They’re several overlapping groups with different needs, different willingness to pay and different reasons to choose you over the alternative. STP is the discipline of acknowledging that and responding to it.
Without segmentation, you’re treating a heterogeneous market as if it were uniform, which usually means messaging too broad to resonate with anyone specifically. Without targeting, you’re trying to serve everyone and probably serving no one especially well. Without positioning, you’ve chosen your audience but not decided what you want them to believe about you.
The framework sits at the foundation of every serious marketing strategy. Finer details like channel selection, creative brief and campaign objectives only make sense once STP is clear.
A full framework guide is available at the STP Marketing framework page.
How STP Marketing Works
Segmentation divides the total available market into groups. A useful segment is measurable (you can estimate its size), accessible (you can reach it), substantial (it’s large enough to be commercially worthwhile), differentiable (it responds differently from other segments) and actionable (you can serve it).
Targeting applies criteria to choose segments. Common criteria: segment size, growth rate, competitive intensity in that segment, fit with your resources, and alignment with your long-term brand direction. Most brands choose two to three segments as primary targets.
Positioning defines the space you want to occupy in those target segments’ minds, relative to competitors. A positioning statement usually takes the form: for [target segment], [brand] is the [category] that [point of difference] because [reason to believe].
STP Marketing Example
Dove’s targeting of women who felt excluded by beauty advertising’s narrow ideals was a targeting decision, not a creative one. The creative (Real Beauty) flowed from a positioning chosen for that specific segment. It worked because the segment was large, underserved by existing advertising, and valued authenticity over aspiration.
Why STP Marketing Matters for Marketers
Strategy without segmentation is guesswork at scale. STP forces the three decisions that determine whether your marketing has any chance of being efficient: who you’re actually trying to reach, which of those people you’ve decided to pursue, and what you’re asking them to believe about you.
The alternative is a brand that stands for something vague, targeted at everyone and trusted by no one in particular.
Frequently Asked Questions
What are the three stages of STP marketing?
Segmentation: divide the market into groups that share common characteristics, needs or behaviours. Targeting: evaluate each segment and choose which to pursue based on size, accessibility, competition and fit with your capabilities. Positioning: define how you want those target segments to think about your brand relative to alternatives.
What are the different ways to segment a market?
Geographic (region, country, city size), demographic (age, gender, income, occupation), psychographic (lifestyle, values, attitudes), and behavioural (purchase frequency, usage occasion, brand loyalty). The most useful segments are ones that predict purchasing behaviour, not just describe who people are.
Can a brand target more than one segment?
Yes, but each segment usually requires a distinct positioning. A hotel targeting both business travellers and leisure families needs different messaging, amenities and price signals for each. Multi-segment strategies are common but more complex to execute. A focused single-segment strategy is often better for resource-constrained brands.