What are the Benefits of Segmentation-targeting-positioning Marketing?

Businesses know that market research is essential to gain customer insights and create a marketing strategy that targets the right audience. One framework businesses use to develop effective marketing strategies is the STP (segmentation-targeting-positioning) marketing framework. This framework analyses the target audience to match a company’s products or services to the right customer. 

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What is Segmentation-targeting-positioning Marketing? 

STP marketing or segmentation-targeting-positioning is a three-step marketing framework used to identify customers who are most likely to purchase the company’s product or service. Understanding customer requirements is the first step for any business. B2C (Business-to-Customer) businesses will take time to understand individual customer preferences and then offer products or services that can solve their pain points. B2B (Business-to-Business) businesses will try to understand the customer’s business or organisation and grow alongside their industry.

What is STP Marketing?


Segmentation helps you to break down groups of potential customers using different criteria:

  • Behavioural – buyer behaviour, brand engagement, customer need, purchase frequency, and purchase occasion.
  • Geographic – address, city, country, population, etc.
  • Demographic – age, gender, occupation, income, marital status etc.
  • Psychographic – lifestyle, behaviour, personal core values, interests etc.

Segmenting in this way allows you to create customer personas and an effective marketing plan for each target. For example, by identifying your customer’s background, age, business engagement, contact channel preference, and purchasing behaviour, you’re equipped with valuable knowledge to target them effectively.


After dividing your customer segments, you can categorise your targets by: 

  • Size – the measure and ability for growth
  • Profitability – spending ability and potential
  • Reachability – the reachability of the client and customer acquisition cost

These three factors help you estimate and prioritise the value of each group to create a tailored marketing strategy.


Positioning defines where the brand sits in the market and what customers expect from the brand when they purchase its services and products. If the brand is positioned correctly, it will be competitive in the market. The objective of brand positioning is to create brand awareness and influence how customers perceive your brand. Market positioning also allows you to analyse and compare your brand’s value to your competitors. 

Types of Positioning Strategy:

  • Product attribution and benefits: associating your brand with certain characteristics or values.  
  • Product price: how you price your product affects how it’s perceived in the market. 
  • Product quality: high-quality products such as high-end makeup, watches and cars avoid price wars with competitors.
  • Product use and application: associating your product with a specific use or application can add value.

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The Importance of STP for Businesses

This section explains more about how STP marketing benefits a brand.

  • Brand communication: The brand can create relevant content to communicate with its target audience.
  • Accurate marketing channels: The brand can select the right communication channels for their target audiences, stopping the budget wasted on targeting a broad audience.
  • Brand improvement and marketing analysis: The brand can use real insights to target a specific audience with an accurate marketing strategy to match the customer’s requirements.  
  • Uplift SME business competition: STP encourages market research which helps a brand remain competitive and uplifts the market as a whole. 


What is an STP Marketing Example?

An example of STP marketing is demonstrated below by the supercar brand McLaren:

  • Segmentation – they will segment their customers by gender, region (the location of their car service centres), income, and lifestyle.
  • Targeting – segmentation might suggest that they target male customers in the northern region with an annual income of more than 60 million Thai baht who drive a high-performance car. 
  • Positioning – they position their brand as a supercar brand, which allows McLaren to compete with brands such as Ferrari, Porsche, and Lamborghini.

Now that you see the value of STP marketing, you may be wondering where to begin. If you need support creating an efficient marketing strategy, contact Primal Digital Agency. Our digital marketing experts are ready to assist you with a free marketing plan today!