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STP — Segmentation, Targeting, Positioning

L7StrategyExecutiondesignStages 2 to 5

Reference model

Segmentation, targeting and positioning (STP)Three steps left to right. Segmentation divides the market into segments of different sizes. Targeting scores each segment on size, growth, reach, fit and room and chooses the best. Positioning places the business on a map of what buyers care about, in an empty place no rival holds. Below, the positioning statement template: for target customers who have a need, we are a certain kind of business that gives one main benefit; unlike the alternative, we are different for a reason that can be proved.1SegmentationDivide the market2TargetingChoose where to compete3PositioningOwn a place in the customer’s mindSegment ASegment BSegment CSegment DSegment ESegment BSegment ESegment ASegment DSegment CScore each on size, growth, reach, fit and roomWhat buyers care about (1)Rival 1Rival 2Rival 3The placewe ownThe positioning statementFor [target customers] who [their need], we are [what we are] that [the main benefit].Unlike [the alternative], [why we are different, and the proof].One benefit, one named alternative, and proof that is true today.

Divide the market, choose where to compete, then own a place in the customer’s mind that rivals do not hold.

About this model

A business cannot be the best choice for everyone. STP asks three questions in order: how can the market be divided into groups that want different things (segmentation), which of those groups will you serve (targeting), and what place do you want to hold in their minds against the alternatives (positioning).

Wendell Smith (market segmentation, 1956), Philip Kotler (segmentation, targeting, positioning), Al Ries and Jack Trout (positioning, 1981) and Geoffrey Moore (the positioning statement, 1991) · 1956–1991

How to read it

  • Split the market by what makes buyers behave differently — who they are, how they buy and what they need — then score each segment on its size, growth, how easy it is to reach, how well it fits you and how open it is.
  • Choose a target on the scores, and say plainly which segments you will not pursue and why.
  • Write the positioning statement for the target: who they are, what they need, what you are, the one benefit that matters and the proof that makes it believable. Then check that the proof is true today.

What this does

Segments the market, picks the target, and defines the position you want to own in their minds.

When to use it

Marketing function, whenever the customer base or offer changes materially.

What happens next

Sets the frame for the 7Ps Marketing Mix and the Customer Journey Map.

Golden thread

Builds on ←

  • raci

Feeds into →

    An end point: its result is the output.

    Framework library: Go-to-market (layer L7), lifecycle stages 2 to 5.

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    Hand-built by Eccellere and reviewed by Eccellere on 02/11/2026. Guidance, not advice: apply your own judgement.