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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.
This tool also runs as a stage in a playbook, which takes you through several tools in order:
- Expand into a new market Stage 5 of 6: which customers first? Start at stage 1
Not following the playbook?
The market and what you will sell there
The market you have chosen, and the product you will take to 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.
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
Rate each segment, then choose the first
Pick the first segment for fit, not size: one your advantages serve well, and one you can reach with what you have.
Your promise to the first segment
One sentence: for whom, what you offer, and how it differs from what they buy today.
The promise
The segments, ranked
Score: fit (strong 3, good 2, weak 1) plus reach (now 3, slowly 1, not for now 0). Size only breaks a tie.
Save your progress
Download your progress file to continue from this point any time, on any computer: choose it under "Coming back?" at the start of the tool. Each new file includes everything so far, including the earlier stages when they are connected, so keep the latest one. Your work stays in this browser only until you close it.
Not saved yet.
Take your results with you
A PDF of the segments ranked, the first segment, your promise and the diagnosis.
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.