STP (Segmentation, Targeting, Positioning) Model Template

What is the STP Model?

Why the STP Model is Important in Marketing

The STP Model is a strategic marketing framework that stands for Segmentation, Targeting, and Positioning. It is designed to help businesses identify their most valuable customers, tailor messages to their needs, and establish a unique market position that differentiates them from competitors.

The STP Model shifts the focus from product-centric marketing to customer-centric marketing, emphasizing the importance of understanding and addressing the specific needs and preferences of different customer groups. By applying STP, marketers can deliver more relevant and impactful marketing strategies that drive engagement, loyalty, and conversions.

The three key components of the STP model are:

1. Segmentation – Dividing the overall market into smaller, distinct groups based on shared characteristics.
2. Targeting – Selecting one or more segments to focus your marketing efforts on.
3. Positioning – Crafting a value proposition and brand message that appeals directly to your chosen target segments.

For example, a fitness brand might segment its market by lifestyle (athletes, busy professionals, new moms), target busy professionals, and position itself as the most convenient and time-efficient workout solution.

STP Model in Marketing Strategy

STP is foundational to any successful marketing strategy. It helps connect high-level market understanding to tactical execution by guiding how a brand selects audiences, delivers value, and communicates its position in the market.

How the STP Model Supports Strategic Marketing

1. Sharpens Market Focus – Helps identify the most profitable and reachable segments.
2. Improves Customer Understanding – Enables deeper insight into different groups’ motivations and behaviors.
3. Guides Tailored Marketing Campaigns – Allows for message customization that increases relevance and conversion.
4. Strengthens Brand Positioning – Establishes a distinct market identity that customers remember.
5. Drives Competitive Advantage – Differentiates your brand where it matters most—within the minds of your target audience.

For example, a car manufacturer may segment by income and lifestyle, target luxury car buyers, and position its brand as a symbol of sophistication and innovation.

Getting Started with the STP Model Template

Implementing the STP model requires structured research, creative thinking, and alignment across your marketing, product, and sales teams.

1. Market Segmentation

Segmentation is the process of dividing a broad market into smaller groups of consumers who have similar characteristics. These characteristics can be:

• Demographic – Age, gender, income, education, occupation
• Geographic – Country, city, region, climate
• Psychographic – Lifestyle, personality, values, interests
• Behavioral – Buying behavior, usage frequency, brand loyalty, decision-making patterns

The goal is to identify segments that are distinct, measurable, accessible, and actionable. Not every segment will be worth pursuing, so the objective is to find those with the greatest potential.

Example: A food delivery service may identify segments like health-conscious eaters, budget-conscious students, busy parents, and late-night snackers.

2. Targeting

Once the market has been segmented, the next step is to decide which segment(s) to target. Targeting involves evaluating each segment’s attractiveness and choosing one or more to focus your marketing and product development efforts on.

Common targeting strategies include:

• Undifferentiated marketing – Targeting the whole market with one message (rarely used today).
• Differentiated marketing – Creating unique messages for multiple segments.
• Concentrated (niche) marketing – Focusing on one specific, well-defined segment.
• Micromarketing – Customizing marketing to individuals or very small groups.

Evaluate potential target segments based on:

• Size and growth potential
• Competitive landscape
• Accessibility and reachability
• Alignment with your brand values and capabilities
• Likelihood of profitability and customer lifetime value (CLV)

Example: A skincare brand may choose to target young professionals with sensitive skin and tailor its products and messaging accordingly.

3. Positioning

Positioning is the process of defining how you want your brand or product to be perceived in the minds of your target audience, relative to competitors.

Effective positioning answers these key questions:

• What value does your product offer?
• Who is it for?
• How is it different from or better than alternatives?

A positioning statement can help articulate this clearly. A simple format is:

“For [target audience], [brand/product] is the [category] that [unique benefit], because [reason to believe or proof point].”

Example:

“For eco-conscious millennials, EcoGlow is the skincare brand that offers clean, cruelty-free products made with ethically sourced ingredients—because we believe beauty should never come at the planet’s expense.”

Once defined, your positioning should guide all marketing communications, including visual identity, tone of voice, website content, advertising, packaging, and sales messaging.

Project Recommendations for Success

Using the STP Model effectively requires careful implementation and iteration. Here are common challenges and how to overcome them:

1. Overly Broad Segmentation – Avoid vague categories. Dig deeper into behavior, values, and motivations to create meaningful segments.
2. Targeting Too Many Segments at Once – Focus on one or two core segments that offer the highest return. You can expand later once you’ve established traction.
3. Weak or Generic Positioning – Be specific. Clearly articulate what makes you different and why your product matters to your target audience.
4. Inconsistent Execution Across Channels – Ensure all departments—marketing, sales, product—are aligned on the positioning and communicate it consistently.
5. Skipping Customer Validation – Test your positioning with real customers. Use surveys, interviews, or A/B testing to refine your message.

Complementary Tools and Templates

Use the following tools to enhance your STP implementation:

• Customer Persona Template – Build detailed profiles of each target segment to understand their goals, challenges, and preferences.
• STP Mapping Framework – Visualize segments, target choices, and the corresponding positioning strategy for each.
• Positioning Statement Worksheet – Craft and refine your brand’s unique value proposition using a structured template.

Conclusion

The STP Model is a powerful, customer-centric approach to marketing that allows businesses to deliver the right message to the right people at the right time. By breaking down your market into meaningful segments, selecting the most promising ones to target, and positioning your brand effectively, you can:

• Improve marketing efficiency and reduce wasted spend
• Increase customer relevance and engagement
• Build stronger, more loyal relationships
• Differentiate your brand in crowded markets
• Drive better results across campaigns and channels

In an age where personalization and relevance are essential to success, the STP Model offers a structured yet flexible strategy for crafting targeted, impactful marketing that drives growth. When applied thoughtfully, it becomes the foundation for smarter decision-making, sharper messaging, and stronger brand performance.