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Segmentation, Targeting, Positioning (STP)

The STP model is a strategic approach used in marketing to identify and prioritize potential markets and to tailor products and marketing efforts to meet the needs of specific segments. It's crucial for product managers to understand and apply STP to ensure their products effectively reach and resonate with their target audience.

Example

Netflix uses the STP model to tailor its content and recommendations, segmenting its audience by viewing preferences and demographics to effectively target and position its streaming service as a personalized entertainment solution.