Overview

STP transforms broad markets into actionable customer groups. Marketers segment by meaningful variables, target the most attractive segments, and position offerings to occupy a distinct place in consumers’ minds.

Key Concepts

• Segmentation Bases: Geographic, demographic, psychographic, behavioral, benefits sought.
• Segment Evaluation: Size & growth, structural attractiveness (Porter forces), company objectives & resources.
• Targeting Strategies: Undifferentiated (mass), differentiated, concentrated (niche), micromarketing (one‑to‑one).
• Positioning: Crafting value proposition; perceptual mapping plots brands by key attributes.
• Repositioning: Changing existing perception to revitalize brand relevance.

Step‑by‑Step Example

Scenario: GlideScoot wants to launch an electric scooter subscription in a metro area.

1 Segment → Commute distance data splits population into downtown dwellers, suburban commuters, and tourists.

2 Evaluate → Downtown dwellers show highest density and low car ownership — attractive.

3 Target → Use concentrated strategy on downtown segment for pilot phase.

4 Position → "Your fastest zero‑emission shortcut across downtown." Map against attributes (speed vs. eco impact) to ensure white space.

Final Answer: Focused targeting sharpens marketing spend; clear positioning differentiates GlideScoot from ride‑share bikes and cars.

Quick Tip