What is STP? Analysis of STP model in Marketing

Surely, you have heard the term STP when looking through any book or website that teaches Marketing. Do you know how brands “operate” under this common formula to make a difference and capture the hearts of customers about the product? Any! Let us “reveal” to tell you more about the STP model in Marketing in the article below!

What is the STP model?

The STP model in Marketing stands for:

– Step 1:  Segment – Segment your market.

– Step 2:  Target – Choose your best customers.

– Step 3: Position – Position the product in the market

The STP in Marketing model is useful because it helps you identify the types of customers that are most valuable to your business, and then develop products and marketing messages that are ideally suited to those customers. This allows you to better engage with each customer group, personalize your message, and sell more products, thereby delivering the right STP strategies for your business.

Analysis of STP model in marketing


Market segmentation is an important and necessary process in the business process of enterprises, especially in Marketing. At that time, groups of buyers in a market are classified and divided into subgroups based on characteristics such as income, age, personality, behavior, interests, etc. The purpose of segmentation is specific characteristics and trends of the market in order to achieve the best business performance, and at the same time help enterprises gain competitive advantages.

Marketers often rely on the following typical characteristics of a market to effectively review and segment:

Measurability: The business must be able to measure and determine the segment size, purchasing power, profitability, and value needs of the segment.
Accessibility: Businesses must have a certain level of interaction with customers in the segment.
Sustainability: Enterprises identify segments that are profitable enough compared to other segments in the market and ensure to maintain the value they bring.
Actionability: Enterprises must create a competitive advantage and be able to serve customers in the segment.

Market segmentation research is not only the key in the first step to help businesses “imprint” their position in the hearts of customers, but also to identify target and long-term customers/consumers for the brand.


After the business has performed market segmentation and found different customer groups based on factors such as age, interests, gender, consumption habits, etc., the next process is Target market selection. This is a step to help businesses identify and select potential markets, in line with their product values. From there, the Marketing department will come up with advertising strategies, integrated communication and plans to attract customers in the segment that the business wants to “target”.

To conquer target customers in different segments, businesses need to have diverse, not fixed methods that continuously innovate over time to suit the receiving needs of customers. One of the effective methods is online advertising aimed at consumer behavior. Businesses have been actively collecting data to deliver messages that drive social media users to be customers in potential segments to buy products. This shows that most businesses are gradually focusing on and optimizing online advertising.

Undifferentiated marketing: is an overall, overarching marketing campaign aimed at all customers in all market segments. The advantage of this strategy is that it saves costs and is the best option to focus on large markets.
Differentiated marketing: businesses offer many promotional activities in different market segments in many forms to bring unique benefits to each segment. The advantage of this strategy is mostly to achieve high sales. Besides, the main disadvantage is the increase in related costs.
Niche marketing: A niche market is a market that is divided into many small parts from a large market to find groups of people with special needs but is ignored by most brands. The development of the 4.0 era, social networks and media have created favorable conditions for niche marketing to develop strongly and effectively.

Besides, choosing the right marketing strategy for each customer segment depends on the products and services that the business provides.


This is the final stage in the S-T-P “power trio” of a strange but strange business

The role of the STP Model in Marketing

If your company’s product is mid-range, nothing unique , different from competitors’ products of the same type, it is very difficult to bring your product deep into the market. Therefore, each company needs to determine for themselves an appropriate STP strategy to be able to come up with an accurate Marketing strategy and meet customer needs in the best way, enticing customers to their company to create profits. highest possible profit.

Good example for STP Model in Marketing
STP marketing has actually been around for a long time and it works, especially in the long run. We will look at a real life example of STP so you can see how it works.
Let’s peaceyen go back to the 1980s, when Pepsi-cola was trying to take a share of the market from Coca-Cola. Pepsi used segmentation  to target a few specific key audiences. They focused on the attitude and loyalty segmentation approach then divided the market into three consumer segments:

Consumers have a positive attitude towards coke brands (who are 100% loyal to coke).
Consumers have a positive attitude towards Pepsi (who are 100% loyal to coke).
Consumers have a positive attitude to both brands, have loyalty to both brands, they have the flexibility to switch purchases of both brands.
Pepsi has always tried to focus their marketing on the third segment, as it is the most attractive and has the highest return on investment. Focusing on loyal Coke customers is seen as a waste of time and money, as they can change their own buying habits.

Good example of STP Marketing: Cola Wars

However, suddenly all that changed with the launch of New Coke in 1985…
The Americas beverage repeat event missed a lot of loyal consumers, so Pepsi took its place. As the  Mental Floss  points out, “Coke headquarters receives up to 1,500 calls per day, up from the usual 400, with almost all of them complaining about the change”

Realizing the change in consumer psychology, Pepsi has begun targeting loyal coke drinkers. Competitor brands also refocused positioning – Pepsi began to spread the news that Coca-cola, allegedly changed the classic coke to the new coke to more closely resemble the Pepsi taste. Their marketing campaigns are brutal.
During that year Pepsi posted a 14% jump in overall product sales. Pepsi used the STP method to increase their market share and convert loyal Cola customers into Pepsi lovers.
Summary: The process from market segmentation to target market identification and brand positioning  (STP) always requires care and flexibility in all activities including searching, selecting, strategizing. advertising, etc. to meet the needs of customers and achieve business efficiency as well as maximum competitive advantage. In addition, Tigobiz offers you a Lean, Professional Online Marketing course that will help you develop yourself in Marketing in general as well as Online Marketing in particular.

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Good Luck To You!