2. Segmentation Flashcards
Define Segmentation
“Dividing the market into distinct groups with distinct needs, characteristics, or behaviours that might require separate marketing strategies or mixes”
Four bases
- Demographic
- Geographic
- Psychographic
- Behavioural
4 Issues with Traditional Segmentation Approach
- Often product or ‘selling’ oriented
- Tend to overemphasize the easily observable
- Letting descriptions define the segment
- Describes the average customer (stereotyping)
What is Marketing Malpractice?
aka finding the right job for your product
“People don’t want to buy a quarter inch drill. They want a quarter-inch hole!” - Ted Levitt
The ‘Jobs’ Perspective
The job, not the customer, is the fundamental unit of analysis for a marketer who hopes to develop products customers will buy
The same product may perform multiple jobs for the same person, or may perform different jobs for different people
Focus on job can help identify with new competitive space, aka “Blue Oceans”
Design a product or position brand on a job for which no optimal product exists yet
Value Pyramid
Social Impact
Self-transcendence
- Life-changing
- Provides hope
- Self-actualization
- Motivation
- Heirloon
- Affiliation/belonging
Emotional
- Reduces anxiety
- Rewards me
- Nostalgia
- Design/aesthetics
- Badge value
- Wellness
- Therapeutic value
- Fun/entertainment
- Attractiveness
- Provides access
Functional
- Saves time
- Simplifies
- Makes money
- Reduces risk
- Organizes
- Integrates
- Connects
- Reduces effort
- Avoids hassles
- Reduces cost
- Quality
- Variety
- Sensory appeal
- Informs
Methods used to find segments
- Guess
- Secondary Data
- Quantitative Surveys
- Qualitative Research
When considering segments for your product
- Identify Problems Groups of People Face
- Look to combine existing solutions
- Split Existing Solutions
Ideal Segment
- 100% of elements that fit with job description
- small size
- fewest number of competitive offerings exist there
- highest perceived fit or value of offering
