Page 87 · Module 03, Know Your Market · this screen continues that page
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Pro tip, from the book
Most founders target the largest segment, not the most winnable one. The most winnable segment is where you have a natural advantage, a network, a credential, an insight, that competitors don't. Winning one segment completely is worth more than partial penetration of three.
Who should run this prompt
Module role profileWho should read your competitive landscape? Every market looks different depending on where you are standing. A market researcher sees data. A competitor's strategist sees opportunity. A customer sees none of your positioning — only their own problem. Use this page to choose the right lens before drawing any conclusions about the market you operate in.
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Use this when
The problem it solvesYou're spreading your marketing budget across too many audiences and seeing weak results everywhere. Or you're about to launch a new product and need to decide which customer segment to go after first.
How the framework works
From the printed pageDeveloped by Philip Kotler, the STP Model is a three-stage strategic marketing process. Segmentation divides the total market into distinct groups with different needs or behaviours. Targeting evaluates each segment and chooses which to focus on, based on size, growth, accessibility, and fit with your capabilities. Positioning then defines how you want to be perceived by the chosen segment relative to competitors. STP prevents the costly mistake of trying to be everything to everyone.
The method, in four moves
Do these in orderMap your market into at least 4–6 distinct segments before evaluating which to target.
Score each segment on attractiveness and your ability to win in it, not just size.
For the chosen target segment, write a positioning statement using Framework 3.7.
Resist targeting more than two segments until you have fully won the first. Choose your market deliberately, don't let the market choose you The most expensive STP mistake is targeting the largest segment instead of the most winnable one. A smaller segment where you have a clear advantage will outperform a large segment where you are one of many.
Where the framework comes from
Philip Kotler, Marketing Management — STP framework, 1967 onwards
Pairs well with
As printed with this frameworkModule 03 — Know Your Market
See your competitive landscape clearly before you move.
10 frameworks, printed on pages 70–89.
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