Segmentation, Targeting, and Positioning (STP)
Segment by needs, target for fit and economics, then position against a real alternative.
Cheat sheet
Segment by needs, target for fit and economics, then position against a real alternative.
What to check first
Use reachable buyers and one common measurement period.
How to make the call
Target offices first and test a punctual lunch promise against canteens.
AMA · What is marketing? · further reading for marketing foundations
Indian practice case
Fictional scenario
A Pune lunch service can reach 2,000 office workers at 8% conversion and 8,000 students at 3%. Contribution is ₹250 and ₹100 per first order respectively.
Reveal the step-by-step solution
- Diagnose the problem.
Use reachable buyers and one common measurement period.
- Work through the evidence.
Office workers yield ₹40,000 and students ₹24,000 in expected contribution.
- Recommend and validate.
Target offices first and test a punctual lunch promise against canteens.
More Indian cases
Interview question
How would you use segmentation, targeting, and positioning (stp) to make the decision in this case? Explain which data you need first and what would change your recommendation.
See what a strong answer includes
Office workers yield ₹40,000 and students ₹24,000 in expected contribution. Target offices first and test a punctual lunch promise against canteens.