The STP model – segmentation, targeting, and positioning

The STP model is the marketing strategy that many companies use to increase their sales. It stands for segmentation, targeting, and positioning. These three steps are vital in order to grow your company successfully. In this blog post, we will discuss what each of these mean so you can better understand how they work together when it comes time to implement them in your own business!

The history of the STP model

Phillip Kotler created the STP model in 1969. It was initially designed to be applied in the marketing strategy of consumer goods companies, but this model can also be used in other areas such as politics and education. The goal of this model is to define where your product or service stands in relation to its competitors for each market segment you are targeting. It will also help you figure out how much emphasis should be given to each targeting segment. The STP model can be seen as a building with three blocks, which are made up of four steps that will help you define the positioning for your product or service.


Segmentation is the process of dividing your target market into smaller groups that are more homogenous. For example, suppose you have a product targeting users in North America between 25 and 55 years old who have an average income level. In that case, you can divide them based on their gender (male or female), their ethnicity (White-Caucasian,  Hispanic-Latino, Black-African American), and their marital status (Singles or Married).

Segmentation allows you to better understand the needs of each group in order to determine targeting options. Once you know your market segments more clearly, it will be easier for you to focus on what they want or need rather than trying to make everyone happy.

Targeting and positioning

Here we get to targeting and positioning. Both are very important because they help you reach the right people with your message. A targeting strategy is based on both data (demographic, geographic) and psychographics (behavioral). It also needs to be consistent across all communication channels such as social media, email marketing, or search marketing.

A targeting strategy is useless without a positioning statement. Your brand needs to position itself as the solution for people in these segments, not just an alternative option or a nice-to-have product/service. It’s much easier said than done, and it definitely takes time, but you will be rewarded if you do your homework right! This means doing thorough research and targeting the right people in your audience.

As you can see, targeting and positioning are highly connected. If you are targeting the wrong audience, it will be complicated to position your brand in a way that sets you apart from other brands.

In summary

The STP model is an important marketing tool that can help you grow your business. We hope this blog post gave you a better understanding of how it works and how you can use it to your advantage. If you still have some questions, feel free to contact us – we will be happy to help!