Definition

Kotler & Keller define STP as “the process of dividing a market into distinct groups of buyers, selecting one or more segments to serve, and positioning the offering to deliver superior value.”

Introduction

Instead of “one size fits all,” STP is about tailoring the shirt to fit your best customers.

Explanation

1️⃣ Segmentation – divide market by demographics, psychographics, behavior.
2️⃣ Targeting – evaluate segments and select the most profitable ones.
3️⃣ Positioning – design brand image to occupy a distinct place in the consumer’s mind (“Think Different”).

Key Takeaways

• Segmentation reveals diversity; targeting focuses resources.

• Positioning is perception management.

• Successful brands own a single word in the consumer mind (Volvo = Safety).

Real-World Case

Nike’s segmentation by lifestyle and motivation (e.g., runners, women, athletes at every level) creates authentic targeted campaigns like “Dream Crazier.”
Reference: https://www.nike.com