The STP Process in Marketing Management Essay

Custom Student Mr. Teacher ENG 1001-04 26 October 2016

The STP Process in Marketing Management

STP stands for segmentation, targeting and positioning.

STP, which stands for segmentation, targeting and positioning, is a fundamental concept in marketing management. It is usually the first step in developing a marketing plan. The three parts of the concept maximize exposure and market saturation by looking at the most important factors that impact how a good or service will be received. Other People Are Reading

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Segmentation is the process of breaking down large target markets in to smaller, sub markets made of consumers with commonalities. These similarities are usually in buying habits and life desires. Demographic segmentation divides consumers by gender, age, income, occupation, education and other factors. The breakdown also bases on geography and lifestyle. The benefits of segmentation in a marketing strategy include helping focus on segments of consumers and figuring out how to appeal to them.


Once the consumer market has been divided into segments, the marketer proceeds to the second step of picking exactly who he should target. The targeting stage involved matching the abilities of the marketing plan with the needs of the consumers. Factors like segment size, growth and investment must be considered to ensure the plan doesn’t overreach or underachieve. Return on investment is also considered in this phase to make sure the target market is worth advertising to.

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The final stage in the STP strategy is positioning the product in the market. Positioning is based on price, product competition, and end-goal strategy. Decisions like which stores will carry a product, on which media it will be advertised, and how it will be sold come into play. The wording of marketing materials and times advertisements will run must also be considered in the positioning plan.


The most important concept within STP marketing is to have all three stages mesh together to form one fluid plan. Segmentation leads to the right target markets, which leads to the right positioning strategy. If at any point in the marketing management process one of the aspects of the STP plan change, you must start from segmentation and rework the strategy. One stage of STP without the others is destined to fail.

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