Your step-by-step guide to explaining the STP process:

In marketing, reaching your audience is the primary way to achieve your business goals, so it’s crucial to focus on targeting the right audience. Understanding your audience isn’t always straightforward, but the STP model simplifies this process by breaking it down into several stages to identify the target segment, understand the audience’s nature, and develop plans for the products or services provided.

What are STP model stages?


  1. Step 1: Strategy or Objectives:
    • Company’s mission/objective.
    • Company’s current situation (SWOT).
  2. Step 2: Segmentation Method:
    • Geographic: Country, city, language, or co-presence. Consumers organized based on where they live.
    • Demographic: Age, gender, income.
    • Psychographic: Lifestyle, self-concept, self-values. Consumers organized based on lifestyle and values.
    • Benefits: Convenience, economy, prestige.
    • Behavioral: Occasion, loyalty. Consumers organized based on how they use the product/service.


Step 1: Evaluate Segment Attractiveness:

    • Identifiable:
      1. Who is in their market?
      2. Are the segments unique?
      3. Does each segment require a unique marketing mix?
    • Substantial:
      1. Too small and it is insignificant – can you create an effective message to reach the segment in question?
      2. Too big and it may be impossible to craft a message that resonates equally with all the members of your chosen “segment”!
      3. Effective segmentation is critical, even if your product has a general market appeal.
    • Reachable:
      1. Know the product exists.
      2. Understand what it can do.
      3. Recognize how to buy.
    • Responsive:
      Customers in each segment must:
      1. React positively to company’s offer.
      2. Accept the Benefits to be received from a product or service.
      3. Trust your company.
      4. Profitable.
  1. Step 2 Selecting a Target Market:
    • Undifferentiated.
    • Differentiated.
    • Concentrated.
    • Micromarketing.


  1. Value.
  2. Salient attributes.
  3. Symbol.
  4. Competition.


With S, you segment the market into categories with similar specifications and needs, enabling you to address these needs through your product.

With T, you determine the size of the segment to target and provide it with the relevant services or products.

With P, you devise a strategy for Products or Brands, deciding how to display and position the brand in the targeted market with a competitive advantage that sets it apart from competitors.

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