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  4. What is STP in Marketing?

What is STP in Marketing?

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Why is STP important in Marketing? STP is a step conducted before making 4Ps. STP stands for segmentation, targeting, and promotion.


What is STP in Marketing




Segmentation is dividing a target market into smaller, more defined categories.




Classify the target market into a smaller group with a similarity based on the facts below.


4 Types of Segmentation


1. Demographic
  • Age
  • Gender
  • Occupation
  • Education
  • Income
  • Social status
  • Family situation
  • Life stage
  • Ethnicity
  • Company size
  • Industry
  • Job function


2. Psychographic
  • Personality traits
  • Values
  • Lifestyle
  • Attitudes
  • Psychological influence
  • Activity, Interest, Opinion
  • Motivations
  • Subconscious and conscious beliefs


3. Behavioral
  • Spending habits
  • Rate of usage
  • Loyalty status
  • Benefits sought


3. Geographic
  • Country
  • City
  • ZIP code
  • Climate
  • Urban / Rural



Targeting is a process of determining which segment to target.

  • Customer demand analysis




Which segment to offer?

  • all the segments
  • Some of the segments
  • One specific segment


What factors should be considered?

  • Segment size
  • Expected growth
  • Competitors’ offerings



The last step of STP is positioning. Positioning is a process where you map your competitors based on the key factors and see where in the map your business should take place.

  • The process of what position the brand wants to build in the field
  • Competitor analysis
  • Internal analysis



By mapping the targets on the perceptual map, you clarify how your competitors are positioning based on the key factors. You might find a gap and guess to take the position no one took yet.





When a business wants to make a marketing plan with 4ps, ①which customers to serve& ②how to serve are considered.

①Choose which customers to serve

  • Market segmentation (parts of a market)
  • Targeting (segments to enter)

②Decide how to serve those customers

  • Product differentiation (what makes it different from the competition)
  • Marketing positioning

STP helps you understand who you are going to appeal to and how to appeal to them.


Marketing: Segmentation - Targeting - Positioning

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