Marketing Model

STP Marketing Model


This aim of this essay is to provide theoretical and conceptual perspective in regards to the STP model which marketing firm used for selecting the target market. In current business environment, Segmentation, Targeting and Positioning are a familiar strategic approach for performing modern marketing. It is one of the mostly applied marketing models in practice. This model supports the firm to successfully target and position the individual through segment the right market (Khan, 2013). Moreover, STP model is useful for creating marketing communication plans as it helps marketers to prioritise proposition and develop, deliver the messages to engage with different audiences. Thus, this marketing model becomes an integral part for the firm for making communications in order to deliver more relevant message to commercially appealing audiences. In respect to such model, the study includes critical discussion about the topic with mentioning examples (Cheng et al., 2014). Based on this, the recommendation will be undertaken for making more effectiveness in the communication strategy.


Theoretical Concept of Segmentation, Targeting and Positioning

In the views of Backhaus and Karlsson (2014), STP model is the combination of segmentation, targeting and positioning of market for implementing the marketing plan in a successful manner. However, the STP model is useful for develop; deliver the personalised and relevant message to engage with different markets. This is the best model to tap larger market in short span of time. This strategy is a product focused approach rather than audiences one as it helps to communicate the message to wide market. STP model flow the information in the following manner.

Marketing Model

(Sources: Hanlon, 2018)

This figure clearly signified that STP focuses on different areas such as select the most valuable segment based on geographical, demographical strategy and then target the relevant market as per the nature and size. After that, position the product in the minds of selected target market in order to develop the requirement of specific product. Thus, this way the information flows in the STP model (Pyo, 2015). This model is mainly significant for the sectors like food, clothing and retail one in order to convey the message to the target audiences. At the same time, this strategy also proves to be useful for audiences also in regards to present their demand and wants to firm for achieving the desired product and service. This strategy directly contributes efficiency for both organisation and general public in regards to fulfil their respective requirements. But in contrary to study, Wang (2016) stated that both positioning and segmentation strategy are distinct part of marketing strategy as both includes different acts and performances. But their purpose is similar to each other. Likewise, segmentation strategy aims is to identify the market and people based on specific organisation structure. On the other hand, positioning strategy is that where marketer position the product in the minds of customer on the basis of quality, feature or other aspects (Maarit Jalkala and Keränen, 2014). This way it creates an awareness or deliver of message related to products & services among the individuals. Hence, this study present that STP strategy include distinct acts but its purpose is common in nature.

According to González-Benito and Martos-Partal (2012), STP is relevant in current business environment as digital method support this model in an easily manner. It is found that currently firm perform its operations at online platform so in that case it become appropriate for firm to easily implement the marketing communication plan. This practice supports less cost investment and offer long-term benefits. In support to this study, Muhamad et al. (2012) stated that STP models also provide advantage to different industries in the form of spot and compare marketing opportunities. It is done through conduct market surveys which signify the needs and demands of each segment and determines to what extent the current offering can satisfy these given needs. Moreover, the segments which consist of low level of satisfaction from current offering presents the excellent opportunities for the marketers. This is because firm get a chance to satisfy that area with providing new or specialised product. Thus, this also proves to be beneficial for other firm to cover the market of other player. In regards to this study, Hassan and Craft (2012) analysed that STP marketing model is contributed towards expansion of business beyond the local boundaries as STP strategy covers multiple areas so it become easy for marketer to explore different market by fulfilling their needs and demands. That’s result in successful expansion of business. Other than that, this business model is also considered as a best option for the new business entrepreneurs in order to launch its market and service in any particular market. This is because model allows the business to identify that which location contributes maximum profit to firm. So the online STP strategy is the reliable practice to achieve the attention of large audiences within the specified budget. Thus, this area support the small or new firm to large extent in regards to establish business in a success manner in the specific market.

In the research of Asensio et al. (2014), it is found that segmentation strategy tend to bring lots of challenges for the marketer to implement. At the initial level, the segmentation cost is the major one which influences the marketing budget as the both online and offline market survey needs a team to conduct the survey. Likewise, for online, the technical team is required to design the message and website for making communication with the users while offline survey demand for an investment on the preparation of questions and ask people about the same. Thus, both areas include cost which affects the marketing budget. So the segmentation strategy proves to be ineffective in concern to raise the cost of firm. In a similar manner, Luxton (2014) believed that without segmentation strategy, marketer can’t able to identify which market is required to covered as segmentation process defines the area which has lower satisfaction level and required for the right product and service. This guides the business accordingly and it result in easily segment the market and attracts target audiences to a larger extent. Furthermore, it is determined that the success of STP strategy largely depend upon the capabilities of firm in the form of its distribution and promotion channel. For instance, if a firm has a less resources and capabilities then it influences the segmentation strategy as business not able to deliver its message to the market so this result in less awareness among the individuals regards to the products and services. This directly influences the marketing strategy of business. So it is stated that the STP model is developed as per the nature and size of business then it proves to be suitable for the firm to satisfy the needs of maximum target audiences.

STP and its practical application of different industries

STP model has the three components target in marketing, segment the market and position the offered services and companies. It has uses differently as per the type of industry and nature of details.

For an example Crockett & Jones company It is the England based shoe manufacturing company and vey famous for Goodyear-welted footwear. It uses the simple STP model in order reef the competitive advantage. At the same time, it targets the market for delivery it products through the demographic and geographic segmentation as it prepares for shoes for men and women. Apart from that it deals in Australia, South Africa, Argentina and USA. In regards to this, as its products lines are quite classy in range and quality (Awanis, 2017). Thus it targets the middle to higher class customers while offering its products. Moreover, this section of customers likes the company product and demand for them. Hence company focuses research on buying behaviour of this customer section and inflecting factors. Moreover, it offers the unique range of products including, Boots, blucher and other accessories like shoe are kit and its new products launched as good year welted shoes (Dionysopoulou et al., 2014). Thus, through various range of products company offer products to the customers. The quality and range of shoes is the USP for this company and attracts the customers to buy the products. This is how company maintains goodwill and reaps the competitive advantage.

On the other hand, company like Sainsbury needs to adopt the effective STR model as it is facing tough completion from Tesco, Aida in terms of prices. At the same time, it segments its market on the basis of demographic approach that includes the behavior, psychographic and profiles of consumers. As it is food Retail Company, customers relates to every section of society at the some extend. Hence, target the all society groups including the youth, old age, children, mid aged person. In addition to this, in order to gain the maximum advantage of the market segmentation strategy and target market, company positioned the market through lower down the products, it aids the company to achieve the market competitive advantage and focus on the enhances the marker share (Arsel, 2015). Apart from this, company is focusing on providing the generic category products that enhanced the customer loyalty by providing the quality products in various categories for life time.

The other example of segmentation, targeting and marketing strategy is Burberry. It is basically British brand operates in craftsmanship; design with innovation, fragrances, cosmetics items and various range of wear cloths. Its segmentation strategy is based on demographic as well as geographical. At the same time, it has expanded its business in Asia-Pacific, America, Europe & Middle East (Marketing91, 2018). Additionally, it delivers the iconic brand products for women, men and children and infant babies.

In addition to this, it has practiced the differentiated the targeting technique and its target is customers of upper social groups with the age group of 20-45 years and provided them quality products in clothing and cosmetics. Its targeting startegtey went well as higher class people interested in buying innovative and luxury products (Peng and Chen, 2012). In order to create the strong customer base it has positioned the goods and services in the market by following the prosperous and creative British culture. Additionally, it has introduced the artificial intelligence and data analytic tools to regain its market share.

Similarly, Tesco is one of best examples of same marketing strategy; it has set the new trends in retail marketing through its segmentation, target market and positioning approach. It is the synonyms for shopping in United States including clothing, house hold products and groceries. It applies the all approaches for segmenting the market including the demographic, geographic, behavioural and physiographic approaches for segmenting the market. It segmentation strategy is different according to the regions and customers buying behaviours and page, income level and regularity and geographically operated in 13 countries. At the same time, it has targeted the low and middle income group of people, students, professionals, skills working class for enhancing the sales and revenues. In order to successfully implementation of marketing strategy, company has cut down the practices so that more customers can add to the business lines. Also, it focuses on the mainlining the products quality despite of lower products prices so that low and medium income customers can continue buying from this brand and increase the brand loyalty In addition to this, techno has launched customer loyalty schemes Tesco Clubcard that played very important role in establishment of Tesco stores and changes the supermarket business (Anyesha etc al., 2014). in this scheme it has stated the shopping card and points system so that it can customs can avail the points for further shopping using the Tesco cards. Moreover, the other examples are shopping through, Tesco homophones, Tesco broadband, shopping through specific finance products etc.

In addition to this, Tabias and the Bear Company, This is the UK based kids wear company set up in Abi Dakin in 2017. It product line includes the different kind of kids wear like baby gowns and leggings etc. Though, this is the new comer in the kids clothing industry as it has applied the simple segmentation marketing strategy based on demographic approach. It has segmented the middle and higher class of society so that it can establish its business initially. It has targeted the new parents as it provides the unisex kids wear that can cover the maximum customers by delivering the quality and comfortable products according to the infant’s requirement and care. It is providing the wears and garments for from 3 to 6 months kids to one year kid as they can use the kid’s wears regardless size and specific color. For the positioning it has presented the non gender kid wear to establish the strong customer base and showcases as unique selling proposition (USP) in the market. In order to this, to increase the number of customers it has also started his business online and delivering the services free without any shipping cost. At the same as it is dealing in online market it has launched discount products while applying on the specific code.

Generic Recommendations

In regards to above study, it is identified that there are STP marketing model is excessively used by the different industries. In this, there are various areas where STP model is lacking. So it is much needed to bring efficiency into the STP marketing model. However, sustainability practice is something which is current need of the business due to increasing issue related to environment (Benoit-Norris et al., 2012). Moreover, there is need an STP which includes the following:-

  • Achieves the desired results in a consistent and sustained manner.
  • Need minimum amount of money, energy in order to bring quality
  • Easy to operate and maintain
  • Need to create awareness among the larger population.

These areas could bring more efficiency in the marketing strategy of firm. Besides that, the industries like footwear and fashion found the STP model as a conventional one which is not appropriate for the current business environment. So in regards to this, these industries should implement the AI &VI technology in order to bring efficiency in the STP model. This is because this technology allows the customer to virtually try the footwear or clothes and then take their buying decision so such practice can influences the STP strategy of firm in a more reliable manner. Thus, it can be stated that firms should start focus on the technologies in order to bring improvement in the targeting strategy (Nabi et al., 2013). Other than that, the social site networking could also contribute towards enhances the effectiveness of STP marketing strategy. It can be done through target the people with the use of social sites application as this action allows to getting engage with the customers and identifying their changing needs and demands so that accordingly product and service will provide to them. Moreover, social site also assist the firm to take online feedback from the customers in order to bring necessary improvements and deliver the best to them. It results in maximum satisfaction of consumers. Therefore, the social-site tends to mark positive impact over the firm sales. However, the quality standard is another recommendation to management in terms to bring more quality into the product and service and successfully attracts the larger customer base. Such process can be performed through include recycle, reuse and reduce method as it push to the reduction of waste and give rise to the efficiency. However, there is also need to include the lean or TQM method to push the quality into the offering. This area helps the business to make differentiate from all competitors across the marketplace. It results in achieving the maximum attention of customers towards the brand. In a similar manner, the combination of social-site also give rise to the bring improvement in R&D. It means that the research & development helps the firm to properly provide improvement in the production and distribution area which give rise to the incorporation of quality and value into the offering. Therefore, it is suggested to industries to focus more on the R&D in order to make the strong positioning strategy.

In addition to this study, customise the offering is another valuable suggestion to management in regards to create a special offers and promotions for different segments by analysing customer requirements (Alrajeh and Lloret, 2013). Likewise, clothing line provides customised touch to its product and services through design them according to the preferences of consumers. This attracts large customer base and improve the competitive edge of brand. Thus, this way marketing strategy can be profitable to a long-term basis.

Furthermore, the changing technology gives rise to the trend of mobile system. Due to this, consumer obsesses with the mobile technology so with the end to end transaction over mobile could allow to grab large customers in different location as the mobile users are increasing in rapid manner. This would give opportunity to firm for tapping large customer base (Tsimonis and Dimitriadis, 2014). This is done through develop own application and provide the product and services offering with mentioning of proper information can assist the firm to attain the customer loyalty. Thus, the mobile application is the best practice to adopt as it could allows the brand to sustain over the longer duration.


From the above discussion, it is concluded that STP marketing model plays an important role for the different industries in regards to communicate the relevant message or information to the larger audiences. This model also supported the firm to identify that which market is suitable for its product and services and accordingly it develop the positioning strategy. However, segmentation strategy helps the firm to select the market and allows to targeting the people in that market. Based on product and service specification, marketer develops the positioning strategy. Thus, these three forms are interrelated to each other and support to bring maximum awareness about the brand in front of customers. Henceforth, STP strategy is the most relevant one for industries in order to sustain for a longer period of time.


Alrajeh, N.A. and Lloret, J., 2013. Intrusion detection systems based on artificial intelligence techniques in wireless sensor networks. International Journal of Distributed Sensor Networks9(10), p.351047.

Anyesha, A., Hassan, D. and Aboki, H., 2014. The Conquering Strategies of Oligopoly Firms. A review on entry Strategies of Tesco Company Plc in the UK and beyond. IOSR Journal of Business and Management16(8), pp.06-15.

Arsel, Z., Eräranta, K. and Moisander, J., 2015. Introduction: theorising gender and gendering theory in marketing and consumer research.

Asensio, J.M.L., Peralta, J., Arrabales, R., Bedia, M.G., Cortez, P. and Peña, A.L., 2014. Artificial Intelligence approaches for the generation and assessment of believable human-like behaviour in virtual characters. Expert Systems with Applications41(16), pp.7281-7290.

Awanis, S., 2017. Ethical Appraisal of Credit-Card Marketing Strategy: Measure and Antecedent Exploration of Consumer Vulnerability to Credit-Card Debt. In The Customer is NOT Always Right? Marketing Orientationsin a Dynamic Business World (pp. 348-357). Springer, Cham., 2019. Tabies & The Bear. [Online] Available at: (Accessed on 30th January, 2018).

Backhaus, T. and Karlsson, M., 2014. Screening level mixture risk assessment of pharmaceuticals in STP effluents. Water research49, pp.157-165.

Benoit-Norris, C., Cavan, D.A. and Norris, G., 2012. Identifying social impacts in product supply chains: overview and application of the social hotspot database. Sustainability4(9), pp.1946-1965.

Cheng, D., Xu, T. and Qi, H., 2014. Evolutionarily stable strategy of networked evolutionary games. IEEE transactions on neural networks and learning systems25(7), pp.1335-1345.

Dionysopoulou, P., Katsoni, V. and Argyropoulou, A., 2014. Agritourism marketing strategy and typology investigation. Journal of Tourism Research.

González-Benito, Ó. and Martos-Partal, M., 2012. Role of retailer positioning and product category on the relationship between store brand consumption and store loyalty. Journal of Retailing88(2), pp.236-249.

Hanlon, A. (2018). The segmentation, targeting and positioning model. [Online] available at: (Accessed on: 30th January, 2019)

Hassan, S.S. and Craft, S., 2012. Examining world market segmentation and brand positioning strategies. Journal of Consumer marketing29(5), pp.344-356.

John Dudovsiy, 2016. Research Methodology. Tesco Segmentation, Targeting and Positioning. [Online] Available at : ( Accessed on 30th January, 2018).

Khan, T., 2013. STP strategy for New Product Launch-a Work in Progress. International Journal of Business and Management Invention2(3), pp.56-65.

Luxton, D.D., 2014. Artificial intelligence in psychological practice: Current and future applications and implications. Professional Psychology: Research and Practice45(5), p.332.

Maarit Jalkala, A. and Keränen, J., 2014. Brand positioning strategies for industrial firms providing customer solutions. Journal of Business & Industrial Marketing29(3), pp.253-264.

Marketing91, 2018.  Marketing strategy of Burberry. [Online] Available at: (Accessed on 30th January, 2018).

Muhamad, R., Melewar, T.C. and Faridah Syed Alwi, S., 2012. Segmentation and brand positioning for Islamic financial services. European Journal of Marketing46(7/8), pp.900-921.

Nabi, R.L., Prestin, A. and So, J., 2013. Facebook friends with (health) benefits? Exploring social network site use and perceptions of social support, stress, and well-being. Cyberpsychology, Behavior, and Social Networking16(10), pp.721-727.

Peng, N. and Chen, A.H., 2012. Consumer perspectives of cultural branding: The case of Burberry in Taiwan. Journal of Brand Management19(4), pp.318-330.

Pyo, S., 2015. Integrating tourist market segmentation, targeting, and positioning using association rules. Information Technology & Tourism15(3), pp.253-281.

Tsimonis, G. and Dimitriadis, S., 2014. Brand strategies in social media. Marketing Intelligence & Planning32(3), pp.328-344.

Wang, C.H., 2016. Integrating correspondence analysis with Grey relational model to implement a user-driven STP product strategy for smart glasses. Journal of Intelligent Manufacturing27(5), pp.1007-1016.





Leave a Comment