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STP Segmentation Tool

Split a market into segments, choose the one to serve first for fit and reach rather than size, and write one promise to it.

The market and what you will sell there

The market you have chosen, and the product you will take to it.

What you have that rivals there don't. Each segment is rated on how well these serve it.

The segments

Groups of buyers who behave alike. Two to five is usual. Split by what changes how they buy: where they buy, how often, what they will pay, their age or life stage, what they use it for.

Fills empty rows with ways most markets split. Rename them to fit yours.

Your notes never leave your browser

Segments, notes and your promise stay on your computer and in your progress file. To write the diagnosis, only the ratings and the first segment's place in the list are sent to our server. How it works

About the tool

Why it exists

A market is too big to enter all at once

STP stands for segmentation, targeting and positioning: split the market into groups that buy alike, pick the one to serve first, and say what you promise it. The first segment should be chosen for fit, not size: one your advantages serve well and you can actually reach.

This tool works on its own, and as stage 5 of our playbook for expanding into a new market, where it picks up the chosen market, product and advantages from stages 3 and 4. Already chosen the market? The playbook can start here. For the method, see our guide to STP.

The method

How the tool works

Two ratings that decide, one that breaks ties. Fit: how well your advantages serve the segment (strong, good, weak). Reach: whether you can reach it with what you have (yes, slowly or only with a partner, not for now). Size breaks a tie only.

The suggested first segment has the highest fit plus reach; a segment out of reach can't be first. You can choose another; if it trades fit for size, the report says so.

The promise. For whom, what you offer, and the difference from what they buy today, joined into one sentence. Stage 6 checks it against the brands already there.

What leaves your computer. Segments and the promise stay in your browser and your progress file. To write the diagnosis, the page sends our server only the ratings and the first segment's place in the list, and the server keeps nothing.