Segmentation, Targeting, and Positioning Essay Sample

Segmentation, Targeting, and Positioning Essay, UAE

In this essay sample, we will discuss one of the most popular marketing model Segmentation, Targeting, and Positioning (STP) models.

STP(Segmentation, Targeting, Positioning) is the most widely used marketing model in digital marketing nowadays. The STP model stands right behind the SWOT matrix in the case of the most popular marketing models. Moreover, it is useful for marketers to prioritize propositions and create marketing communications plans. 


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Besides, it helps to develop and deliver relevant and personalized messages to connect with distinct audiences. Additionally, the STP marketing model mainly focuses on distinguishing the most valuable segments, commercial effectiveness.


Segmentation is the method of breaking a target market into smaller, more specified categories. It segments the customers and audiences into groups that share similar characteristics such as interests, demographics, location, or needs. 

Using different types of market segmentation allows you to target customers based on unique characteristics, create more effective marketing campaigns, and find opportunities in the competitive market.

Types of Market Segmentation:

There are four basic marketing segmentation types as follows:

  • Demographics: It gives the idea of the buyer’s background like age, education, gender, location, profession, etc.
  • Psychographic: It divides the audience based on identifying potential customer’s personality traits such as attitude, values, lifestyle, interests, etc.
  • Behavioral: Segmenting based on their buying and purchasing behavior, their income source and annual income, etc.
  • Geographical: Distinguishing customers based on their geographical location such as Country, city, zip code, climate, area around the central location, and zone(rural/urban)


After segmenting the audience, move on to the targeting phase. In targeting, we divide the customers who can increase our conversion rate. We decide the most profitable customers or market to invest in.

First of all, decide the worthy targeting marketing segments. To decide the worthy audience, we follow the steps mentioned below:

  • Verify whether the segment consists of adequate potential customers to yield enough profit.
  • Measure the differentiability from the other segments
  • The target segment must be accessible by each member of the sales and marketing team.
  • Evaluate if your company is ready and equipped to serve the segment.
  • Identify all the legal, physical, technological, or social barriers.


Positioning is the last step in this framework. It permits you to make your product or service unique from the competitors. It helps you evaluate and enhance your position in the competitive target market.

There are three positioning factors to gain you a competitive edge:

  1. Symbolic Positioning: It helps in enhancing the self-image and trust of customers in the brand.
  2. Functional Positioning: It involves solving customer problems and providing them genuine service and benefits.
  3. Experimental Positioning: It focuses on improving the emotional connection between the brand and the customers.


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Benefits of STP Marketing model

STP model focuses on building and maintaining a precise target audience and positioning your service or product most appealingly to the audience. STP model is provided tones of benefits in marketing, some of them are discussed here:

  • Brand messaging becomes more personal and empathetic.
  • The marketing mix becomes more crystalline and yields a higher return on investment.
  • Market search and research innovation become more effective.
  • Communication and relation between company and customer become stronger.

Creating an STP marketing strategy

Creating an STP model involves various factors such as:

  1. Define the market: Before segmenting the audience you need to define the target market aspects. To define the market, first define the Total Available Market, Serviceable Obtainable Market, and Serviceable Available Market.
  2. Create Audience Segment: Now divide the audience segment based on demographics, geographical, psychological, and behavioral aspects.
  3. Construct Segment Profiles: Segment profiles are the detailed description of the people in each segment. Describe their behaviors, shopping traits, demographics, needs,  brand preferences, and any other characteristics. That will help you to filter segments for strategy purposes.
  4. Evaluate the effectiveness of each segment: Evaluating the segment involves cross-checking the findings with available market data and customer research. It will help us to estimate the most profitable segment.
  5. Select Target audience: Now decide the most viable audience of yours based on the collected data. 
  6. Develop a Position Strategy: Now, build a positioning strategy to stand out from the competition. First, evaluate where you stand in the competitive market and who are your top competitors, what are they doing? Then make a strategy to make your product or service unique or make the marketing strategy goal-oriented.

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