Segmentation, targeting, and positioning, also famous as STP process, is a marketing application which is followed by leading commercial houses and manufacturers. Considering the enormity of market size, particularly on a global scale, this application becomes a necessity for every scale of marketing organization. The objective of STP is to help a marketing organization attain a marketing mix for addressing a greater market segment.
Segmentation is the breaking down of a large market into smaller and more meaningful components so that identification of prospective customers becomes easier. After segmentation, targeting of potential buyers becomes convenient. Targeting of prospects is essentially a process of focusing a definite section of buyers. All marketing activities are centered on this targeted community of potential buyers. Positioning implies creation of product perception through FAB (feature, advantage, benefit) analysis of a said product or service as compared to a competitive brand.