STP marketing is a three-step approach to building a targeted marketing plan. The "S" stands for segmenting, the "T" for targeting and the "P" for positioning. Together, these help marketers formulate a strategy for marketing a product by segmenting the audiences, targeting segments according to their preferences and positioning their brand as the better choice.

Going through this process allows a business owner and marketing consultants or employees to formulate a marketing strategy that ties company, brand and product benefits to specific customer market segments.


  • STP stands for Segmenting, Targeting and Positioning. As a marketing tool, it can help you identify your target audience and create the right messages to reach the target group.

Segment Your Market

The segmenting step is essentially a brainstorming activity. You list out all the potential market segments you could target in a marketing campaign. Niche companies sometimes have only one target market, while other businesses may have five or 10 possible segments, or more.

Cell phone providers, for instance, often separate customers by benefits. Some buyers want high-tech gadgetry while others want dependable communication for travel and emergencies.

You can segment out your customers by demographics such as age and gender, lifestyle interests, geographic location, or behavioral patterns such as how much they use your product or service.

Target the Segments

When you have multiple, distinct market segments, you typically need to customize marketing campaigns that appeal to each. As you go through the STP process, you will select which segment to target with your upcoming campaign.

Using the cell phone example, you might decide to launch a new campaign to promote advanced mobile features, media, apps and texting tools to younger, tech-savvy audiences. For this campaign, you would develop messages and use media tailored to that market.

Usually, the more information or data you have about specific market segments, the better you can target them by meeting them where they're at through the use of language, media channels and visual storytelling that appeal to their preferences.

Position Your Brand

Positioning is how you align your brand or products in the target market. The goal is to offer something that is bigger, better or more valuable than what your competitors offer to a particular market segment.

For example, Apple attempts to position itself as an innovative, cutting-edge technology provider to discerning tech buyers who want top-quality solutions. Your positioning serves as your big-picture guide in building your marketing campaign.

The key to positioning is to examine the relationship between your values as a company and what you offer as it relates to the customer segment you want to target.


Once you have strategized using the STP process, the next step is to implement your marketing tasks to achieve intended goals.

If you want to increase brand awareness within an emerging market, you will design commercials or ads that introduce your brand and develop an image. You will pick media commonly used by that target group.

If you are a new outdoor sports gear retailer, for instance, you will create print, radio, TV, magazine, Internet or other ads that promote your quality or value to campers, hunters or outdoor enthusiasts.