"The term STP marketing refers to the process of segmenting, targeting and positioning. Marketers use this set of activites in formulating marketing strategies for their brands. STP also provides a strong foundation for advertising campaigns".

Source - Advertising & Integrated Brand Promotion - Allen, O’Guinn, Seminik.

S.T.P Marketing is broken down into three different areas which are Segmentation, targeting and positioning.

Market segmentation

"Segmentation is the process of identifying and grouping individuals with similar needs, attitudes and behaviour".

Source - Warc Briefing - November 2010

"The subdividing of a market into homogenous subsets of customers, where any subset may conceivably be selected as a target market to be reached with a distinct marketing mix".

Kotler - Marketing Management 2000

Both of the above quotes state that segmentation is finding out what specific groups of individuals want and need. It is also the process of dividing the market into distinct groups which could require seperate products.

There are many different types of segmentation that are used for marketing, which include -

Geographic

Dividing the market into different geographical units such as nations, regions, counties and cities. This disadvantage to this is that there is a large assumption that everyone from each geographic location will be similar to each other in their marketing needs, which isn’t always the case.

Demographic

This is probably the most commonly used segmentation type. Demographic segmentation is dividing the market into groups such as age, gender and income. This can be very successful because people of the same age and gender will tend to have very similar thoughts and beliefs.

Who to target?!

The next step for STP marketing is targeting which is the process of measuring the feasibility of each segment and the most successful option will be the one that is chosen. 

Positioning is creating a concept to appeal to the target market. Once a target audience has been agreed on then we need to create an idea that will appeal an interest the market we are intending to advertise to.

STP in simple terms (pictures, no words.)

Segment - Needing a new car

Targeting - Males with high disposable income

Positioning - High end new cars.

http://www.tellyads.com/show_movie.php?filename=TA0157

This advert shows how cars are advertised to males with high disposable income. Its an advert for Jaguar which is an already, well known car. The advert shows attractive women and glimpses of the car. It suggests that if we buy the car then we will have the women round us just like in the advert. Who doesnt want that?

  1. winningatuni posted this