STP Framework

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🎯 The STP Framework: Your Secret Weapon for Winning Customers

Imagine you’re throwing the perfect birthday party. You wouldn’t invite everyone in the whole city, right? You’d pick the right people, understand what they love, and make sure the party feels special just for them. That’s exactly what the STP Framework does for businesses!


🌟 What is STP?

STP stands for:

  • Segmentation → Dividing people into groups
  • Targeting → Picking the best group
  • Positioning → Making your product special for that group

Think of it like this:

🎂 Segmentation = Sorting kids by what cake they like (chocolate, vanilla, strawberry) 🎯 Targeting = Choosing to make the chocolate cake because most kids want it ✨ Positioning = Making YOUR chocolate cake the yummiest one they’ve ever had!


📦 Part 1: Market Segmentation

What is Market Segmentation?

Imagine you have a big box of LEGOs. Some pieces are red, some are blue. Some are big, some are small. Some are wheels, some are windows.

Market Segmentation is like sorting your LEGOs into groups that go together!

Simple Example:

  • Ice cream shop sorts customers:
    • Kids who love colorful sprinkles
    • Adults who prefer fancy flavors
    • Health-conscious people wanting low-sugar options
graph TD A["All Customers"] --> B["Group 1"] A --> C["Group 2"] A --> D["Group 3"] A --> E["Group 4"] B --> F["Same needs"] C --> G["Same needs"] D --> H["Same needs"] E --> I["Same needs"]

🗺️ Geographic Segmentation

Sorting People by WHERE They Live

Just like weather is different in different places, people in different places want different things!

What it means:

  • Dividing customers based on their location
  • Could be by country, city, neighborhood, or climate

Real-Life Examples:

Location What They Want Why
Hot places (Miami) Air conditioners, ice cream It’s warm!
Cold places (Alaska) Heaters, warm coats It’s freezing!
Cities Small cars, fast delivery Less space, busy life
Countryside Big trucks, gardening tools More land, different needs

Story Time:

🌴 McDonald’s in India doesn’t sell beef burgers (cows are sacred). In Japan, they have teriyaki burgers. Same company, different places, different food!


👨‍👩‍👧‍👦 Demographic Segmentation

Sorting People by WHO They Are

This is like sorting people by things you can easily see or count about them.

The Main Categories:

Factor Example Groups Product Example
Age Kids, Teens, Adults, Seniors Toys vs. Walking canes
Gender Boys, Girls, Everyone Dolls vs. Action figures
Income Low, Middle, High Dollar store vs. Luxury shop
Education School, College, PhD Simple vs. Technical books
Family Size Single, Couple, Big family Sports car vs. Minivan

Simple Example:

🎮 Video game companies know:

  • Kids (6-12): Want colorful, fun games
  • Teens (13-19): Want cool, action games
  • Adults (30+): Want games they can play in short bursts

Why It Works: A 5-year-old and a 50-year-old don’t want the same cereal box!


🧠 Psychographic Segmentation

Sorting People by HOW They Think and Feel

Now we’re looking inside people’s minds! This is about:

  • What do they believe?
  • What do they dream about?
  • How do they spend their free time?

The Three Big Parts:

  1. Lifestyle - How they live
  2. Values - What they care about
  3. Personality - Who they are inside

Example Chart:

graph TD A["Psychographics"] --> B["🏃 Active Lifestyle"] A --> C["🌱 Eco-Friendly Values"] A --> D["🎭 Adventurous Personality"] B --> E["Gym memberships"] C --> F["Reusable bags"] D --> G["Travel packages"]

Real-Life Example:

🚗 Two people earn the same money, but:

  • Person A loves showing off → Buys a flashy sports car
  • Person B loves the planet → Buys an electric car

Same income, different values, different choices!


🛒 Behavioral Segmentation

Sorting People by WHAT They Do

This is about watching what people actually DO, not just who they are.

Key Behaviors to Watch:

Behavior Question Example
Usage Rate How often do they buy? Daily coffee vs. Once a year
Loyalty Do they stick with us? Always Nike vs. Tries any brand
Benefits Sought What do they really want? Price vs. Quality vs. Speed
Occasion When do they buy? Birthday cakes, Holiday gifts

Story Time:

☕ Coffee shops notice:

  • Morning Rush customers want FAST service
  • Afternoon customers want to sit and relax
  • Weekend customers bring friends and stay long

Same coffee shop, different behaviors, different service!

Simple Example:

🎁 Amazon notices you always buy dog treats. So they show you more dog stuff! That’s behavioral segmentation in action.


🎯 Target Market Selection

Picking Your Perfect Group

You’ve sorted everyone into groups. Now it’s time to CHOOSE!

It’s like picking teams:

You can’t play with everyone at once. Pick the team that gives you the best chance to win!

Three Ways to Choose:

graph TD A["Target Market Selection"] --> B["🎪 Mass Marketing"] A --> C["🎯 Niche Marketing"] A --> D["🔬 Micro Marketing"] B --> E["One product for everyone"] C --> F["Special product for one group"] D --> G["Custom for each person"]

Explained Simply:

Strategy Like… Example
Mass Party for the whole school Coca-Cola - everyone drinks it
Niche Party for just the art club Tesla - for eco-luxury lovers
Micro Personal gift for one friend Custom Nike shoes with your name

How to Pick the Best Group:

Size - Is the group big enough? ✅ Money - Can they afford your product? ✅ Reachable - Can you find them easily? ✅ Different - Is this group truly different from others?


⭐ Market Positioning

Making Your Product SPECIAL

You picked your group. Now make sure they LOVE you!

Positioning is answering:

“Why should this group pick ME instead of someone else?”

The Positioning Formula:

For [target customer]
Who needs [what they want]
Our product is [what you offer]
That [why you're different]
Unlike [competitors]
We [your special thing]

Example:

For busy parents Who need quick healthy meals Our meal kit is 15-minute dinners That tastes homemade Unlike frozen dinners We use fresh ingredients delivered daily


🎨 Positioning Strategies

Different Ways to Be Special

There are many ways to stand out. Pick the one that fits YOU!

The Main Positioning Strategies:

Strategy You Say… Example Brand
Quality “We’re the BEST” Apple - premium everything
Price “We’re the CHEAPEST” Walmart - save money
Speed “We’re the FASTEST” Amazon Prime - 1-day delivery
Service “We CARE the most” Zappos - amazing customer service
Innovation “We’re the NEWEST” Tesla - cutting-edge tech

Visual Map:

graph TD A["Your Product"] --> B{Pick Your Position} B --> C["👑 Quality Leader"] B --> D["💰 Price Leader"] B --> E["⚡ Speed Leader"] B --> F["❤️ Service Leader"] B --> G["🚀 Innovation Leader"]

Story Time:

🍔 Two burger places on the same street:

  • Burger King: “Have it YOUR way” → Customization position
  • In-N-Out: “Fresh, never frozen” → Quality position

Both sell burgers. Both are successful. Different positions!


🏆 Putting It All Together

Let’s see the whole journey:

graph TD A["🌍 Whole Market"] --> B["📦 Segment It"] B --> C["🗺️ Geographic"] B --> D["👨‍👩‍👧 Demographic"] B --> E["🧠 Psychographic"] B --> F["🛒 Behavioral"] C --> G["🎯 Pick Target"] D --> G E --> G F --> G G --> H["⭐ Position Your Product"] H --> I["🏆 WIN!"]

Remember the Birthday Party?

STP Step Party Example Business Example
Segment List all your friends by interests Group customers by needs
Target Pick the superhero fans Choose eco-conscious millennials
Position Make the BEST superhero party ever Be the most sustainable brand

🎉 You Did It!

Now you understand how smart companies find their perfect customers!

Quick Recap:

  1. Segmentation → Sort people into groups
  2. Targeting → Pick your favorite group
  3. Positioning → Be their favorite choice

💡 Remember: You can’t be everything to everyone. But you CAN be the perfect choice for YOUR people!


The STP Framework isn’t just for big companies. Even a kid selling lemonade can use it:

  • Segment: Hot days vs. cold days
  • Target: Hot days with lots of walkers
  • Position: The coldest, sweetest lemonade on the block!

🍋 Now go find YOUR perfect customers! 🍋

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