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Strategic Marketing: Segmenting, Targeting, and Positioning (STP)

5 min readMay 25, 2025

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In strategic marketing, precision beats volume — you need to reach the right audience with real impact rather than broadcast indiscriminately to the whole world. That’s where the Segmenting, Targeting, and Positioning (STP) model makes a huge difference. It helps you expend your energy where it counts, carve out a compelling identity, and communicate with unmistakable clarity. Without it, businesses would end up pitching gym memberships to dedicated couch enthusiasts, wasting time, effort, and perfectly good sales pitches.

What Is STP?

STP is a three-step process:
1. Segmentation: dividing the market into subgroups with distinct traits or needs
2. Targeting: choosing which of these subgroups to prioritize
3. Positioning: defining how your offering should be perceived by the chosen group

Together, these steps turn strategies into actions, ensuring your product doesn’t just exist, but resonates.

1. Segmentation: Understand Before You Speak

Segmentation is based on the understanding that no market is truly homogeneous. People vary in needs, values, location, behaviors, and priorities. Segmentation helps identify who your

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Maggie Sun
Maggie Sun

Written by Maggie Sun

MBA, certified agile coach and experienced strategy analyst, specializing in business agility, agile leadership, Beyond Budgeting, and general management.

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