Teaching guide: STP segmentation, targeting, positioning

Outlines the marketing process.

Model/theory

Key points

Managers must:

• analyse a market to identify the segments that exist
• select which segments they think the business should target (depending on eg relative strengths)
• decide where in the targeted markets the products should be positioned relative to competitors.

When you can use this

When discussing market analysis and making marketing decisions you could consider:

• how markets are segmented
• what makes a segment attractive to a business
• why a business might target relatively few or many segments
• how a business might decide to position its products (this links with market mapping)
• the nature of the marketing mix because this must link back to the target market and positioning of the product.

Where it's been used

• Q4, A-level paper 1, SAM set 1

• Q16.1, AS paper 1, 2016