What Is STP Marketing?

by Gerald Hanks; Updated September 26, 2017
Business man talking to colleagues in conference room

The letters "STP" in STP marketing stand for segmentation, targeting and positioning. The STP method is a strategic concept in the discipline and application of marketing. The STP strategy shows the connections between the marketplace and the methods a company selects to contend in that marketplace. The objective of the STP method is to help the company in its creation and execution of an advantageous marketing mix by learning precisely which benefits the product provides and which customers desire those benefits.


Segmentation involves understanding the reasons behind why people buy a product and which of those potential customers will be highly satisfied with that type of product. Segmentation can include demographic criteria, such as age, income, gender, education or geographic location. STP marketers can also use personality metrics, such as political affiliation, lifestyle choices and price sensitivity. Purchasing behavior, such as past purchases, store preferences and frequently visited websites, also provide market segmentation data.


Targeting allows companies to identify the market segments that best fit their products. Companies that employ an undifferentiated targeting strategy use the same marketing mix to target all types of market segments. A differentiated targeting strategy helps companies develop a different marketing mix for each market segment. A focused targeting strategy applies a marketing mix for one or two specific market segments, while ignoring the rest. For instance, a clothing company with a differentiated targeting strategy will use a different marketing mix when targeting families with children than the one it uses to target single adults.


Positioning involves the development of a product that the selected target market segment views as unique when compared to similar products in the industry. Companies can choose to position themselves based on any of the "four P's" of marketing: product, place, price and promotion. For example, a clothing company that targets families with children can position itself using price and product by mentioning the affordability and durability of its children's line of clothes.

STP Marketing Strategy

Because the principles of STP marketing revolve around the creation of a marketing mix organized specifically for those potential customers most likely to buy those products, the implementation of those strategies can deliver a decisive advantage over the competition. A clothing company may choose to advertise through websites and social media to target younger customers, while also using magazines and TV shows to target older adults.

About the Author

Living in Houston, Gerald Hanks has been a writer since 2008. He has contributed to several special-interest national publications. Before starting his writing career, Gerald was a web programmer and database developer for 12 years. He also started Story Into Screenplay, a screenwriting blog at www.StoryIntoScreenplay.com.

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