STP-Segmentation Targeting, Positioning And Brand Repositioning Essay


Describe the STP-Segmentation Targeting, Positioning and Brand Repositioning.



STP, which includes in it the process of segmentation, market targeting, and market positioning, has become a vital marketing model in today’s marketing era. The success of this model also depends upon this fact that the previous models were more focused on the products rather than on customers. This marketing model proves to be important in establishing plans of communication as it facilitates priority of the elements and providing vital information to reach a relevant audience. STP is basically a customer-oriented approach instead of being a product-focused approach. This project deals with the significant information about the STP process and its significance in achieving the marketing mix objectives of the companies success. The study even evaluates the role played by the STP process in the brand repositioning of company brands across the companies by taking a few examples.

Market Segmentation

Market division or segmentation is the division of client markets into homogenous gatherings of clients, each of them responding diversely to advancement, correspondence and also to the different variables of the marketing mix or advertising blend (Dibb, et al., 2009). Preferably, significant contrasts between purchasers inside every section are as little as could be expected under the circumstances. Along these lines, each fragment can be dealt with a separately focused marketing approach.


It becomes a sworn necessity to customize your marketing in strategies if you have a varying range of market segments. As you plan your proceedings with the STP procedure then you should have a clear cut idea about which segment to target for the coming campaign (Smith & Wendell, 2011). There may be a case when you might decide to launch a fresh campaign that informs your customer about your latest products like latest apps, mobile features, and texting tools to the techno-savvy customers. To target this segment, one would require use of personalized messages and use of media channel which is in its vicinity.


Positioning is quite simple how you will place your products in the existing market that you have targeted (Ries & Trout, 2009). The sole goal is to offer something that prevails all the products that already exist in the market both in terms of value and money. Just for example Apple has made an image of itself as a company that truly focuses on the quality and new innovations to its customer who want nothing short then top notch quality. You positing is an all important factor that helps you build your whole market campaigning. The STP involves three major steps that tends to focus on the way you analyze your products and depicts their merits to the separate market segment (Brooksbank, 2010).

Figure 1: STP and Marketing Mix

Source: Kotler (2012)

In short STP is made up of three words where:

  • Segmentation of the market
  • Targeting the best customers
  • Positioning of the offering

The importance of this model lies in the fact that it aids you in highlighting those customers which are the most valuable one to you and devising you products all according to their needs (Kotler & Keller, 2010). This helps you stay connected to each market group deliver special campaigns to them ensuring higher sales.

Examples and Analysis


Marriott International® has devised a very smart strategy by taking over different hotels in each market segment ensuring a greater business. The Courtyard by Marriott® is solely designated to those customers who are travelers on road. All they want is a good looking and clear room that follows strict cleanliness standards. Ritz-Carlton® hotels are for the one who want to experience luxury. Marriott ExecuStay® is for the professional travelers ensuring full adjustments to their long time stay. It can be clearly seen that Marriot International does not believes in conveying the same message to all its customers as because it targets very separate and distinct market segment which has ensured his rapid growth (Frank, et al., 2012).

Applying the STP Model

These are the procedure which should be followed when you want to apply the STP model to you organization with ease.

Step 1: Segmentation of Market

The Product that your organization offers cannot give all well to all the people as everyone is born with his distinctive choice and that’s why segmenting your market into parts is important that includes all those people who closely reassemble to each other when it comes to choices and needs (Beverland, et al., 2010). This allows you to approach each and every customer with the products he likes offering you with a humongous edge over your rivals following the transactional procedures.

The people can be distinguish with the help of following factors-

Demographic – factors like age, marital status, gender, ethnicity and other come to play

Geographic – divided on the basis of country, state and city

Psychographic – factors like personality, ethics and values.

Behavioral- factors on the basis of usage, benefit and loyalty of products.

Segmentation simply means identifying what different sort of customers needs in the product.

Example 2

In Auto Market, for some customers speed and performance is the top most priority while for others it is safety and comfort.


The Adventure Travel Company is a travel company in that has spitted up its market into three different segments to ensure more consumer toll and saving the cost wasted in creating packages for more than three groups. The three groups are as follows :

Segment A for those who are young and married recently founding their upmost interest in exotic location which suits their pocket too. Segment B is for the middle class families which demands places where they can have fun and are perfectly suited for the children’s too. Segment C is for the older people who have retired and focus on nothing short then luxury, comfort and peace.

Step 2: Targeting the Best Customers

Next thing that comes in the line is to identify and focus on those Potential clients that can become your bets customers. In this case you have to strictly consider which group of customers will ensure you more profitability and then effectively study their growth and potential of every customer group with proper attention and comparing it to the other segment so that your revenue is not deducted (Kotler & Kevin, 2009). In the last step carefully examine about the service of your company in that market considering all the legal, technological or social barriers with the help of PEST Analysis which will help you understand the threats and possibilities of each market segment.

Example 1

The adventure travel company’s revenue in each market segment after clear analysis comes as-

Segment A $8,220,000

Segment B $4,360,000

Segment C $3,430,000

The company with the help of this result focuses mainly on the segment A and hence increases its revenue manifold.

Example 2

No matter McDonalds is an market leader when it comes to fast food chains with its approved quality makes It easier to promote things like Gourmet Food as they are not quite aligned with that and thus they only focus on extending the range of services in which they offer their products.

Step 3: Positioning of the Offering

The last and the most important step are to effectively position your product to your top priority customers. Then you can also devise a way that will effectively blend with your entire market segment ensuring the total good of your company (Weinstein & Art, 2010).

In this process you should consider what makes your product different than the others available and then strictly have an idea on basis of poll or research that what idea each market segment has for your products to position your product better. In the coming step deal with the needs and wants of each segment and highlight the value that your products offer over your rivals products which will help you devise an better market campaign appreciated by all your customers.

Example 1

The company offering Adventure Travel desists itself as “finest eco-vacation service provider for young married couples which is Segment A”. It host some contest on social platforms like Instagram® and Interest® for reaching the market as because a majority of Potential customers can be identified here. The campaign gapes viral with more and more people taking their interest in it ensuring a great people whom tit can target and send their promotional campaigns through Emails.

Example 2

In simple words apple has extensively focused on its product and campaigns to make its product look like a user friendly computer making a distinct image for them in the market.

Brand Repositioning Example:

The first example to this is Mother Energy drink which was launched as a subsidiary to the famous Coca-Cola brand in Australia using a marketing strategy of trials and spending huge money on it. They procured extensive TV Commercials inspired form the Madagascar movies trending at that time. They also focused on their product packaging which also served their purpose (Fuchs & Adamantios, 2010). Even though the product Campaign was incredibly successful resulted in greater customer troll but the product was not up to the mark lowering their re-sales. Coca-Cola has to decide whether to remove this product form market or to reposition it as because it was defaming the quality standards of Coca-Cola. Then they improved their product and ensured a marketing strategy by criticizing their old product in funny way which helped Coca-Cola reposition it once again in the market.

Conclusion and Recommendations

It is concluded that STP depicts a strong connection between the target market and the way a company selects to compete in that specific market. The marketing model is also termed as a process, which begins with the segmentation of the overall market, then choosing the targeted market(s) and finally executing the positioning aspect. STP, overall, aims at guiding a business organization in order to develop and implement an appropriate blend of marketing mix.


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Fuchs, C. & Adamantios, D., 2010. "Evaluating The Effectiveness Of Brand?€ђPositioning Strategies From A Consumer Perspective". European Journal of Marketing, 44(11), pp. 1763-1786.

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Smith & Wendell, R., 2011. "Product Differentiation And Market Segmentation As Alternative Marketing Strategies". Journal of Marketing, 21(1).

Weinstein, A. & Art, W., 2010. Handbook Of Market Segmentation. New York: Haworth Press.

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