STP: The Strategic Trinity That Transforms Marketing

Marketing isn't about talking to everyone—it's about talking to the right people, in the right way, at the right time.

What is Segmentation, Targeting, Positioning (STP)?

STP is a disciplined, sequential process that demands:

• Rigorous market research before any segmentation begins

• Select the most valuable customer segments

• Create a unique position that resonates with those customers

The Three Pillars of STP

1. Segmentation: Market-First, Not Brand-First

Segmentation isn't about slicing up your existing customers, but mapping the entire market objectively:

• Begin with quantitative research of the total market (not just your customers)

• Focus on needs-based and behavioral segments, not just demographics

• Identify segments that exist independently of your brand

• Measure the size and value of each segment precisely

Example: Nike doesn't start with "who buys our shoes" but researches the entire athletic footwear market, including non-customers and competitor loyalists.

2. Targeting: The Courage to Choose

Targeting is the most neglected aspect of marketing—the willingness to explicitly reject segments:

• Assess each segment for attractiveness AND your competitive advantage

• Commit 2-3 specific segments only—trying to appeal to everyone means appealing to no one

• Explicitly document which segments you will NOT serve

• Avoid the "targeting illusion"—saying you target everyone while effectively targeting no one

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3. Positioning: Perceptual Competition

Positioning is fundamentally competitive—how you want to be seen relative to alternatives:

• Conduct perceptual mapping against key competitors

• Focus on 3-4 core attributes that matter to your target segments

• Ensure positioning is simple, consistent and distinctive

• Position against actual alternatives your customers consider

Implementing STP: The Zen Way

1. Begin with Diagnosis, Not Strategy

Start with extensive market research—both qualitative and quantitative. Never segment without data. Budget 10% of your marketing resources for research.

2. Apply Tough Segmentation Standards

Each segment must be: measurable, substantial, accessible, differentiable, and actionable. Reject fuzzy segments based on intuition rather than data.

3. Make Explicit Target Choices

Document which segments you will serve AND which you will not. If you can't name segments you're explicitly not targeting, you're not really targeting.

4. Position Against Competitors

Your positioning must clarify how you're different from specific competitors your target segments consider, not just what benefits you offer.

4. Cascade Strategy Before Tactics

Develop the marketing mix only after STP is complete. Your 4Ps should flow directly from your positioning, not the other way around.