Here s refers to market segmentation, that is, market segmentation; T represents the target market, that is, selecting the target market; P stands for positioning, which means market positioning. Because of this, marketing guru and philip kotler believe that the core of contemporary strategic marketing can be defined as STP. STP analysis is often used before entering a new market or conducting a certain R&D.. STP analysis includes market segmentation, objectives and positioning. Before introducing them separately, it should be emphasized that the three elements of S, T and P do not exist independently, but are interrelated. STP analysis is the main tool for enterprise product planning and marketing.

Market segmentation refers to the process of dividing the market of a product or service into a series of market segments according to the differences of customer needs. Target market refers to the market segments that enterprises choose and decide to enter, and it is also a market component that is beneficial to enterprises. Market positioning is to determine the competitive position of one's products or services in the target market in the marketing process, also called "competitive positioning".

Market segmentation: With the intensification of competition, it is almost impossible to cover the whole market through a single product or product line. This is not only a financial problem, but also a problem of gradually diversifying consumer preferences. Therefore, how to find a suitable entry point from the fierce market competition is the first step to success, which is also the purpose of market segmentation. For example, when car manufacturers plan to develop new cars, they should not only understand the overall situation of the automobile market, but also include market segments, SUVs, cars, coupes and so on. On the basis of comprehensive analysis, they should find the most suitable field to enter.