When discussing the marketing planning process, STP stands for segmentation, targeting and positioning that firms use to identify and evaluate opportunities for increasing sales and profits. In addition,
• Market segmentation includes aggregating prospective buyers into groups or segments that have mutual needs and will respond similarly to a marketing action.
• Targeting is the procedure of assessment the appeal of various segments and then determining which to pursue as a market.
• Market positioning includes the process of importing the marketing mix variables so that the target customers have a clear, characteristic, desirable sympathetic of what product does or signifies in a contrast with opposing products.