What Does STP Stand For?

Discover what STP stands for in marketing and how segmentation, targeting, and positioning can benefit businesses. Learn from real-life examples and case studies.


STP stands for segmentation, targeting, and positioning in marketing. It is a strategic approach used by companies to effectively target a specific market segment with the right product and messaging. In this article, we will explore what STP stands for and how it can benefit businesses.


Segmentation is the process of dividing a market into distinct groups of consumers with similar needs, characteristics, or behaviors. By segmenting the market, companies can tailor their products and marketing strategies to better meet the needs of each group.

  • Demographic segmentation (age, gender, income)
  • Psychographic segmentation (lifestyle, values, beliefs)
  • Behavioral segmentation (buying behavior, usage rate)


Targeting involves selecting which market segments to focus on based on their attractiveness and compatibility with the company’s resources and capabilities. By targeting specific segments, companies can allocate their marketing resources more efficiently and increase the likelihood of success.

  • Undifferentiated targeting (targeting the entire market)
  • Differentiated targeting (targeting multiple segments with different marketing strategies)
  • Concentrated targeting (targeting a single, specific segment)


Positioning is the process of creating a distinct image and identity for a product or brand in the minds of consumers. It involves highlighting the unique benefits and attributes of the product to differentiate it from competitors and attract the target market.

  • Value proposition (what sets the product apart)
  • Perceptual mapping (how the product is perceived relative to competitors)
  • Brand positioning (creating a strong brand image)

Examples of STP

An example of STP in action is Apple’s targeting of the premium market segment with its high-end products and sleek designs. By segmenting the market based on consumers’ willingness to pay for quality and aesthetics, Apple has been able to position itself as a luxury brand with a loyal customer base.

Case Studies

PepsiCo’s segmentation strategy focuses on targeting different consumer segments with a variety of product offerings, such as Pepsi for young adults, Gatorade for athletes, and Tropicana for health-conscious individuals. This approach has allowed PepsiCo to effectively reach a diverse range of consumers with tailored marketing messages.


STP is a fundamental concept in marketing that helps companies identify and reach their target market effectively. By understanding the principles of segmentation, targeting, and positioning, businesses can develop strategies that resonate with consumers and drive success in today’s competitive marketplace.

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