Mastering the STP Model: Segmentation, Targeting, and Positioning in Marketing

Sarah Butler
5 days ago
3 min read

If you want to improve how you market your product or service, one of the best places to start is with the STP model. STP stands for Segmentation, Targeting, and Positioning—a strategic framework that helps you understand your customers better, focus your marketing efforts, and stand out in a competitive marketplace.

Let’s break it down.

1. Segmentation – Know Your Market

Segmentation means dividing your broader market into smaller, clearly defined groups of people who share similar characteristics. Instead of treating everyone the same, you group people in meaningful ways to tailor your message and offerings.

You can segment your market based on:

Demographics – age, gender, income, education level
Geographics – country, city, region, climate
Psychographics – values, attitudes, interests, lifestyle
Behaviour – purchase history, brand loyalty, product usage

Why it matters:

Segmentation helps you understand the specific needs, preferences, and motivations of each group. This allows you to create more relevant content, products, and campaigns that actually resonate.

2. Targeting – Choose the Right Audience

Once you’ve segmented your audience, targeting is about selecting which segment(s) you want to focus on. Not every group is worth pursuing—this stage helps you be strategic.

Factors to consider when choosing a target segment:

Segment size and growth potential
How well your product or service fits their needs
Your ability to reach them with your current channels
Level of competition in the segment

Targeting strategies include:

Concentrated targeting – Focus on one niche segment (great for small businesses or specialised products)
Differentiated targeting – Serve multiple segments with different messaging or offerings
Undifferentiated targeting – One message for all (rare today, used for generic mass-market products)

Why it matters:

Targeting the right audience ensures your marketing is efficient and effective. It focuses your resources where they’ll deliver the most return.

3. Positioning – Shape How You’re Perceived

Positioning is about defining how you want your brand or product to be seen by your target audience. It’s the message you send to help them understand what you offer and why it’s better than the alternatives.

Questions to ask when defining your positioning:

Why should your target audience choose you?
What makes your product or service different?
How do you solve their specific problem?

You can position your offering based on:

Price – budget-friendly or premium
Quality – high-performance or reliable
Innovation – new and cutting-edge
Convenience – easy access or time-saving
Values – sustainability, inclusivity, or ethical practices

Your positioning should be reflected in everything from your website to your product packaging and advertising slogans.

Why STP Matters

The STP model keeps your marketing focused and relevant. Here’s what it helps you achieve:

Reach the right people with the right message
Avoid wasting time and money on uninterested audiences
Build loyalty by meeting real customer needs
Stand out in a crowded market with a strong, clear value proposition

Without STP, you risk:

Bland, unfocused marketing that doesn’t connect
Wasted ad spend on the wrong groups
Being overlooked by your ideal customer
Lower conversion rates and poor ROI

A Real Example: How Nike Uses STP

Let’s take a look at Nike—a brand that nails the STP model.

Segmentation:

Nike segments its market by:

Age (teens, adults, older consumers)
Gender (men, women, non-binary)
Fitness level (athletes, beginners, casual users)
Interests (running, basketball, lifestyle fashion)

Targeting:

Nike uses differentiated targeting. For example:

Women’s campaigns often focus on empowerment, community, and wellness
Basketball ads feature elite athletes and highlight performance and achievement
Lifestyle lines target fashion-conscious consumers with a sporty edge

Positioning:

Nike positions itself as more than just a sports brand. It’s about inspiration and pushing personal limits. Their slogan, Just Do It, resonates across all segments because it speaks to motivation and inner strength.

The Result:

Their messaging, products, and branding all align perfectly—making Nike one of the most recognised and emotionally resonant brands in the world.

Final Thoughts

The STP model is simple but powerful. It helps you understand your audience, communicate more effectively, and build stronger connections. Whether you’re marketing a product, service, or even yourself—segment, target, and position with purpose.

Need help developing your own STP strategy? Start by asking: