The STP marketing process is a fundamental component of modern marketing. Essentially, it identifies how brands and their product offerings will compete in the marketplace. This is achieved through the identification of relevant and attractive market segments for the organization, followed by the development of a suitable product positioning (which is how the firm intends that consumers will understand the brand’s key benefits).
Most textbooks present the concept of market segmentation structured around the STP model (or sometimes also referred to as a process), where S stands for (market) segmentation, T stands for targeting and P stands for (product) positioning.
Having an understanding of the STP model is an important foundation for university students to be able to connect the relationship between market segmentation, target market selection, and product positioning, (as these concepts are interrelated and are connected to the organization’s marketing strategy).
Therefore, the main topic areas for the STP marketing process addressed in this part of the market segmentation study guide are: