WK 4: SEGMENTATION AND TARGETING Flashcards
Targeting:
decision to peruse after particular segment
How To Segment Markets:
STEP 1: Identifying the full combination of needs that this product satisfies
STEP 2: Identifying different groups of people (segments) who may possess this set of needs!
STEP 3: Describe segments
2 Things to avoid when segmenting a market:
- Don’t let the DESCRIPTORS define the segment
- Don’t STEREOTYPE!
4 Strategies for identifying segments in a whole market (C.I.S.S)
- Split up market based on variants of core goal(s) product category satisfies
- Identify goals/problems for which no good solution currently exists
- Combine goals satisfied by products from different categories
- Spend time with people (observational research)
The ___ is the set of buyers, sharing common needs, that the company decides to serve.
Target market
We want our segments to be: (S.A.A.D.I)
Substantial
Accessible
Actionable
Differentiable
Identifiable
Identifiable :
want to know who is in each segment so that we can effectively measure and reach them.
Substantial
want to know how small/large our segments are. What is the growth in the segment?
Accessible:
Can we effectively reach each of these segments with our promotional tools and distribution strategies?
Actionable:
Do we have the resources to meet their needs? Can we affordably go after them?
Why should you segment by benefits, rather than the descriptors? There are 3 reasons:
- Only way to have a clear message in the market
- Only way to deliver what the customer wants
- Marketing academics have not been successful at segmenting the markets differently and still finding meaningfully different segments
Often, 3 issues companies run into when segmenting their market include:
1) Fail to create a segment
2) They fail to separate demographic and segmentation from one another
3) Failing to understand why they need to segment and what decisions they will make based on the information after
