STP (Segmentation, Targeting, Positioning) Model

By: A Staff Writer

Updated on: Jul 19, 2024

What: Breaks down a market into segments, selects the most attractive target, and positions your offering for that segment.

Who: Wendell R. Smith is credited in 1956, but the concepts evolved over time.

Why: Helps entrepreneurs avoid a generic ‘one size fits all” approach, maximizing marketing and sales efforts.

When: Launching a new product/service, entering a new market, or if your marketing feels unfocused.

How:

1. 1. Segment your market (demographics, needs, etc.)
   2. Evaluate segments for potential.
   3. Develop a unique positioning for your chosen target.