What does the acronym STP stand for in marketing?

In marketing, the acronym STP stands for Segmentation, Targeting, and Positioning, which are three fundamental steps in the marketing process.

Segmentation involves dividing the broader market into smaller, more defined categories of consumers who share similar characteristics or behaviors. This helps businesses understand their customers better and tailor their marketing strategies accordingly.

Targeting follows segmentation and involves choosing which of these segments to focus on, allowing companies to concentrate their marketing efforts and resources on the most promising groups. By identifying a target market—whether it's based on demographics, behavior, or psychographics—businesses can effectively engage their desired audience.

Positioning is the final step, which defines how a product or brand is perceived in the minds of consumers relative to competitors. This involves crafting a clear image and message that resonates with the target audience, ensuring that the product stands out in the marketplace.

Through these three steps—segmentation, targeting, and positioning—marketers can develop effective strategies that meet the needs of consumers and enhance the overall effectiveness of marketing campaigns.