// description
STP stands for Segmentation, Targeting, and Positioning. Segmentation divides the total market into distinct groups based on shared characteristics. Targeting evaluates each segment's attractiveness and selects one or more to serve. Positioning crafts a distinct image and value proposition in the minds of the target segment, differentiating from competitors. STP is the strategic backbone of marketing: before tactics, you must know who you are talking to and what you want them to think.
// history
Philip Kotler, a professor at Northwestern University's Kellogg School of Management, synthesised STP from earlier marketing theory and made it the centrepiece of modern marketing strategy through his textbook Marketing Management, first published in 1967 and now in its 16th edition. Kotler is often called the father of modern marketing.
// example
A digital product creator uses STP to position her Midjourney course. Segmentation: she identifies five buyer groups — complete beginners wanting to explore AI art, creators who want to monetise Midjourney, small business owners wanting marketing visuals, authors wanting book cover art, and crafters wanting designs for POD. Targeting: she evaluates each segment and selects "creators who want to monetise Midjourney" as the primary target (most motivated, largest willingness to pay, clearest outcome). Positioning: her course becomes "the only Midjourney course specifically focused on turning AI art skills into income through KDP, Etsy, and digital downloads" — a distinct position in a field where most courses focus on art quality rather than monetisation.
// katharyne's take
Positioning is where most creator businesses leave money on the table. You can have a great product and poor positioning — "another gratitude journal" — or a similar product and brilliant positioning — "the gratitude journal specifically for people recovering from burnout." The positioning statement you choose determines your keywords, your copy, your cover design, your price, and who finds you. Spend real time on your "Positioning" step. Ask: in your buyer's mind, in the few seconds they're scanning search results, what do you want them to immediately understand about this product that makes it the right one for them specifically?
// creative uses
- Use the Segmentation step before building any new KDP or Etsy product line: list every distinct buyer type in your niche, then pick one and build every detail of the product — title, cover, interior, keywords — exclusively for that segment. Niche products outperform generic ones in marketplace search every time.
- Apply Positioning to your Midjourney or Canva template packs: instead of "Aesthetic Instagram templates," position as "Instagram templates for ceramics sellers who want a handmade-studio look without hiring a designer." Specific positioning converts browsers to buyers and commands a higher price.
- Use STP to evaluate whether to enter a new product category: if you can't write a clear Positioning sentence that differentiates your product from the top three results in search, the category is likely too saturated to enter without a real niche angle.
// quick actions
- Write a one-sentence Positioning statement for your best-selling product in this format: "For [specific target buyer], [product name] is the [category] that [key differentiator]." If you can't complete it in under 30 seconds, your positioning needs work.
- Search your top keyword on Etsy or Amazon and read the first five listing titles. Write down exactly what they all say. Your positioning should say something visibly different — if your title looks identical to the competition, you have no position at all.
- List the top three buyer segments for your niche and score each on: size (how many buyers?), motivation (how urgently do they need this?), and willingness to pay. Serve the segment that scores highest across all three, not the largest segment.
// prompt ideas
Help me run an STP analysis for my [KDP / Etsy / digital product] business. My niche is [describe it]. First, help me segment the potential buyers into 4–5 distinct groups. Then evaluate each segment for size, motivation, and willingness to pay, and recommend which one to target. Finally, write a positioning statement in the format: "For [target buyer], [product] is the [category] that [differentiator]."
I'm launching a new [product type] for [describe your broad niche]. The top 5 competitors in my market are positioning themselves as [describe what you see in the market]. Using STP, help me find a positioning angle that's genuinely differentiated — specific enough to attract a committed buyer segment and distinct enough to stand out in search results.
Here are my last 10 bestselling [Etsy listings / KDP titles / digital products]: [list them]. Based on what's selling, help me identify which customer segment is actually buying from me, and write a positioning statement I can use across my shop tagline, listings, and email list opt-in to attract more of that specific buyer.