In STP, S stands for Segmentation and T of  Targeting, Segmentation does divide the whole market into different Segments. Targeting involves evaluating the various segments and deciding how many and which ones to target, that’s how Target follows Segmentation.

As we understand from Segmentation or take the example of a Clothing Brands. There are different segments in the clothing / Fashion Industry. Some Of them might prefer Professional Clothing, some of them consider Casual wear or Semi Formal Depends on their interest.

Targeting involves each of these segments in terms of the attractiveness to the company. Then choosing one or more from these segments to target with the company offerings.

There are three Generic target marketing Strategies-

  1. Undifferentiated or mass strategy
  2. Differentiated strategy
  3. Concentrated or niche strategy

Undifferentiated or mass strategy- 

Undifferentiated marketing strategy is when a company must decide to ignore market segments differences and go after the whole market with one product offering.

It focuses on what is common in the needs of consumers rather than what is different undifferentiated marketing relies on mass distribution and mass advertising, aiming to give the product a superior image in the minds of consumers.


It was Henry Ford who adopted an undifferentiated marketing strategy for his Model T Ford which was only available in the color black in the early 1930s.

Differentiated strategy-

Differentiated marketing strategy is when a company decides to target more than one market segment and designs a separate offering for each market segment.


McDonald’s internationally who use a differentiated marketing strategy in India. They have developed a unique menu for local consumers such as the McCurry pan, a vegetarian dish, which is very popular also the Indian version of the big mac.

Big Mac is called the Maharaja Mac is made with two grilled chicken patties and is topped with onions, tomato cheese and a spicy mayonnaise.

Both products conform to Indian religious sensitivities because beef and pork products are not consumed.

By adopting a differentiated marketing strategy is being true to the marketing concept by adapting an organisation’s product or service to meet the needs of customers and different markets.

Concentrated or niche strategy-

Concentrated marketing strategy is when a company’s resources are focused. Instead of going after a small share of a large market the company goes after a large share of one or a few sub markets.

Many examples of concentrated marketing can be found for example-

Rolls Royce cars and Rolex watches aimed their products at the premium market segment Once you have identified various segments in the market and decided upon your target marketing strategy, you have to evaluate which target segment to cater to.

A common framework that is used to evaluate of the segment is 3c’s Framework-

  1. Customers
  2. Competition
  3. Company

The three C’s model is a business model which offers a strategic look at the factors needed for success. It was developed by Kenichi Ohmae, a business strategist.

The three C’s model points out that a strategist should focus on three key factors for success. In the construction of a business strategy three main players must be taken into account.

These being one the corporation to the customer three the competitors. Only by integrating these three C’s corporation customer competitors in a strategic triangle can a sustained competitive advantage can exist o’may refers to these key factors as the three C’s of strategic triangle.