STP stands for Segmentation, Targeting, and Positioning, a marketing strategy used to identify and reach specific customer groups. In the segmentation phase, businesses divide the market into distinct categories based on characteristics like demographics, interests, or behaviors. This helps in understanding the diverse needs of potential customers. Once segments are identified, targeting involves selecting the most appropriate group to focus on. Finally, positioning refers to how a product or service is presented to that target audience, ensuring it stands out in the market. Together, these steps help companies effectively connect with their desired customers.