STP Analysis: A Worked Example and Positioning Template

May 2, 2026

Author: Shusaku Yosa

STP stands for segmentation, targeting and positioning. It connects three choices: how to divide a market, which customers to prioritize and why those customers should choose your offer. The goal is a defensible decision, not an attractive matrix.

Start with customer problems and constraints. Choose a segment your business can serve economically, then test whether buyers value the proposed difference. The fictional example below uses Aoba Tools, a software business exploring work-reporting tools for small manufacturers. It is not a customer success story or market forecast.

The three outputs of STP

Stage	Decision	Useful output
Segmentation	Which groups have meaningfully different needs?	Candidate segments and evidence
Targeting	Which groups deserve priority?	Selection and exclusion reasons
Positioning	Why choose this offer over alternatives?	A value proposition and validation plan

Company size alone rarely explains a purchase. In B2B markets, examine the user, approver, existing systems, implementation burden and procurement requirements. A feature valued by a daily user may not answer a decision-maker’s questions.

Step 1: Build segments from problems and constraints

Candidate	Hypothesized problem	Constraint or alternative	Evidence to collect
Small manufacturers	Manual consolidation of reports	Paper and spreadsheets	Frequency and staff workload
Multi-location retailers	Inconsistent store reporting	Headquarters approval and devices	Fields that can be standardized
Large-company departments	Duplicate entry between systems	Security and integration reviews	Required interfaces and review time

Use interviews, inquiries and lost-deal records. Label an assumption as an assumption. An unsupported market-growth percentage should not make a segment appear attractive.

Step 2: Select a target you can actually serve

Evaluate problem severity, willingness to pay, delivery cost, access to buyers and your ability to run a useful pilot. A large potential market is less helpful if your current product cannot meet its requirements.

For this illustration, Aoba Tools prioritizes small manufacturers because it can reach prospective users and provide initial configuration support. This is a choice for the example, not a rule that every STP exercise must select exactly one segment. Multiple segments need sufficiently distinct propositions, economics and ownership.

Test	Question
Need	What happens if the customer does nothing?
Economics	Can the price cover support and delivery costs?
Access	Can the team reach users and decision-makers?
Capability	Can the promised service be delivered today?
Validation	What small pilot would resolve the main uncertainty?

Step 3: Position around a customer-valued difference

A draft proposition might be: “For small manufacturers collecting reports in spreadsheets, Aoba Tools offers a simplified reporting workflow with initial setup support.” Before publishing it as a competitive advantage, verify both the delivery capability and the value to customers.

Positioning involves choices about activities and trade-offs, as discussed in Harvard Business School’s strategic positioning overview. Promising extensive custom development to every industry would change the economics of this supported, focused offering.

If you draw a positioning map, choose axes buyers actually use. An empty space is not proof of demand. For example, ask whether customers compare configuration flexibility with implementation support rather than assuming those are the decisive dimensions.

Step 4: Validate behavior, not polite agreement

Ask about the most recent reporting task, where time was lost and what the team has already tried. Find out who must approve a change and what evidence would justify continuing after a pilot.

Avoid relying on “Would this be useful?” Ask what happened, what alternative was considered and what prevented a purchase. A positive interview response is not the same as a commitment or verified willingness to pay.

Step 5: Turn the choice into execution

The landing page should identify the target problem and support scope. Sales materials should explain implementation, limitations and evaluation conditions. Track why prospects accept, reject or abandon the offer, as well as support effort and continued use.

Use this worksheet: target customer; recurring problem; current alternative; proposed difference; supporting evidence; excluded scope; validation method; owner; review date. Revise it when the customer problem, competitive conditions or delivery economics change.

A 3C analysis organizes customer, competitor and company evidence. STP makes the choice; the marketing mix turns that choice into actions. Keep those roles distinct so every framework advances the decision instead of repeating the same background information.