Rediscovering Market Segmentation
Segments
Reflect the company's strategy
Indicate where sources of revenue or profit may lie
Identify consumers' values, attitudes, and beliefs as they relate specifically to product or service offerings
Focus on actual customer behaviour
Make sense to top executives
Accommodate or anticipate changes in markets or consumers behaviour
Aspects
What are we trying to do?
Which customers drive profits
Which attitudes matter to the buying decision?
What are my customers actually doing?
Will this segmentation make sense to senior management?
Can our segmentation register change?
Gravity of Decision Spectrum
Shallow End
In the Middle
Deep End
Common Failures
Excessive interest in consumers' identities
Too little emphasis on actual consumer behaviour
Undue absorption in technical details of devising segmentations