Segmentation, Targeting, and Positioning Analysis (STP)

The STP marketing concept – one of the fundamental pillars of modern marketing.

STP is an acronym composed of the three key steps in strategic marketing planning:

• S - Segmentation
• T - Targeting
• P - Positioning

This is a process through which companies identify and address specific market opportunities, rather than trying to serve all customers with one general product or message.

Let's break down each element:

1. Segmentation

What is it? The process of dividing the broad, heterogeneous market into smaller, more homogeneous groups (segments) of consumers who have similar needs, desires, characteristics, or behavior.

Goal: To identify different customer groups to better understand their specific needs.

Main types of segmentation (bases):

• Demographic: Age, gender, income, education, marital status, profession, religion, ethnicity.
  Example: Luxury brands target high-income consumers.
• Geographic: Location (country, region, city, neighborhood), climate, urban/rural area.
  Example: A sweater chain sells heavier winter coats in northern regions.
• Psychographic: Social class, lifestyle, personality, values, beliefs, interests.
  Example: Patagonia focuses on people who value nature conservation and active lifestyle.
• Behavioral: Shopping habits, usage frequency, brand loyalty, sought benefit, purchase occasion.
  Example: Wedding platforms focus on people who have the specific occasion "engagement/wedding".

2. Targeting

What is it? The process of evaluating the attractiveness of each identified market segment and selecting one or more segments that the company will attempt to serve.

Goal: To focus marketing resources and efforts on segments where the company has the greatest chance of success.

Targeting strategies:

• Undifferentiated Marketing (Mass Marketing): Ignores segment differences and addresses the entire market with one general offer. Suitable for mass consumption goods (e.g., salt, flour).
• Differentiated Marketing: The company decides to enter several segments simultaneously, developing a separate offer for each.
• Concentrated Marketing (Niche Marketing): Focusing on one specific, well-defined subgroup (niche). Often used by small companies.
• Micromarketing (Local / Individual Marketing): Personalizing products and marketing programs for individual customer needs or local groups.

3. Positioning

What is it? The process of shaping the image of the product or brand in the minds of target customers relative to competitors.

Goal: To occupy a clear, distinct, and desirable place ("position") in the consumer's mental map.

How is it achieved? Through creating a unique marketing mix (4P: Product, Price, Place, Promotion) that communicates the brand's value and distinctive features.

Key questions for positioning:

• Who is this product for? (Target segment)
• What is it? (What category does it belong to)
• Why is it good? (Unique benefit or competitive advantage)

Example: Luxury brands target high-income consumers.

Volvo positions itself as "safety".

Toyota as "reliability and economy".

Ferrari as "prestige, luxury, and high performance".

Tesla as "innovation, technology, and environmental friendliness".

Summary and significance:

STP is a sequential and logical process:

• First, you segment the market into groups.
• Then you choose which group(s) is most suitable for you (target).
• Finally, you position your product in the minds of that group relative to competitors.

The significance of STP is enormous. It allows companies to:

• More effectively allocate their marketing budgets.
• Develop products and messages that more accurately meet specific customer needs.
• Build stronger and more loyal customer relationships.
• Create stronger competitive advantage.
• Avoid the ineffective "shotgun" approach where they try to please everyone but end up pleasing no one.
• In essence, STP is the ability to find the right customer for your product, rather than trying to sell the product to everyone.

In essence, STP is the ability to find the right customer for your product, rather than trying to sell the product to everyone.