Segmentation, Targeting, and Positioning (STP) in Action: Real Brand Examples

Introduction

Segmentation, Targeting, and Positioning (STP) is one of the most important frameworks in marketing. It helps brands define who their customers are, what segment to focus on, and how to position their product in a way that stands out from competitors. If you master STP, you can design campaigns that connect with the right people, at the right time, with the right message.

In this article, we will break down the STP process and show you real-world examples of how brands like Coca-Cola, Nike, and Apple have applied it to achieve market leadership. You will also learn practical steps to apply STP in your own strategy.

What is Segmentation?

Segmentation is the process of dividing a broad market into smaller, more defined groups of consumers. Each group shares common characteristics, needs, or behaviors. The four common types of segmentation are:

Demographic: Age, gender, income, education.
Geographic: Country, city, region, climate.
Psychographic: Lifestyle, values, personality.
Behavioral: Purchase behavior, brand loyalty, product usage.

By segmenting, companies can avoid a “one size fits all” approach and focus resources on the most profitable groups.

What is Targeting?

After identifying market segments, a brand must decide which group to focus on. This is called targeting. The company chooses a segment that aligns with its strengths and has enough potential demand to justify investment. Targeting strategies include:

Mass Marketing: One message for the whole market (rare today).
Differentiated Marketing: Different campaigns for multiple segments.
Niche Marketing: Focusing on one specialized segment.
Micromarketing: Highly personalized offers, often digital-driven.

What is Positioning?

Positioning is how a brand wants to be perceived in the minds of its target customers. It answers questions like:

What problem does your product solve?
How is it different from competitors?
Why should customers choose you?

A good positioning strategy creates a clear, distinct, and desirable image for the brand. This is usually expressed in a positioning statement and reinforced through marketing communications.

STP in Action: Real Brand Examples

Coca-Cola

Coca-Cola uses demographic and psychographic segmentation to market different products. For health-conscious consumers, it promotes Coke Zero. For younger audiences, it launches lifestyle-driven campaigns like “Share a Coke.” The targeting is differentiated, and the positioning emphasizes happiness, sharing, and refreshment.

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Nike

Nike segments by psychographics such as lifestyle and aspiration. It targets athletes and everyday people who want to “Just Do It.” Its positioning is inspirational and performance-driven. This strategy has allowed Nike to expand beyond sportswear into a cultural icon of motivation and achievement.

Apple

Apple uses premium positioning with clear psychographic targeting. It appeals to tech-savvy professionals and creative individuals who value design, simplicity, and innovation. While competitors compete on features and price, Apple’s positioning builds loyalty through lifestyle association and perceived status.

Amazon

Amazon focuses on behavioral segmentation, targeting frequent online shoppers. Its positioning revolves around convenience, low prices, and fast delivery. Through personalization and AI recommendations, Amazon also practices micromarketing at scale.

Red Bull

Red Bull segments based on psychographics and lifestyle, focusing on young, adventurous individuals. It targets thrill-seekers through extreme sports sponsorships and events. Its positioning is not about the drink, but about giving you “wings” to push limits and live actively.

How to Apply STP to Your Business

If you want to apply STP in your own marketing, follow these steps:

Research your market: Collect data through surveys, analytics, and customer feedback.
Segment your audience: Divide by demographics, behavior, or psychographics.
Evaluate segments: Size, growth, profitability, and fit with your brand.
Select your target: Choose the segment that offers the best opportunity.
Craft your positioning: Develop a clear message and value proposition.
Communicate consistently: Use campaigns, content, and branding to reinforce your position.

Why STP Matters Today

In today’s competitive market, customers expect personalized experiences. Brands that ignore STP waste resources and risk becoming irrelevant. Those that embrace it build stronger connections, higher loyalty, and better ROI. Whether you are launching a new product or expanding globally, STP gives you the framework to succeed.

Conclusion

Segmentation, Targeting, and Positioning is not just theory, it is the foundation of modern marketing. From Coca-Cola to Apple, every leading brand applies STP to create clarity and differentiation. If you want your business to thrive, start applying STP today.