Segmentation is dividing your customers up into groups, and these groups can be defined by multiple simultaneous traits (e.g. female executive golfers)
Several issues are important when considering when (and how much?) to segment a market:
- Identifiability
- Accessibility
- Responsiveness
Modern technology makes the first two much easier, but still worth asking, and #3 is as challenging as ever, especially also considering the size and financial value of the segment in question
Niche and segments are different. A segment is an artificial division in a group to better understand its behaviors. A niche is a small group with a specific interest that is often overlooked by larger companies.
FOUR BASES OF SEGMENTATION to help understand a population
- State-of-Being Segmentation
- Geography
- Don’t neglect your outer rims!
- Age
- Update for hip modern kids!
- Income & Education
- Highly correlated….
- Gender
- Women can be marketed to as well, and understanding the target is vital for success
- Sexual Orientation
- Race and Ethnicity
- Geography
- State-of-Mind Segmentation
- One option is VALS typology
- Innovators
- Thinkers
- Achievers
- Experiencers
- Believers
- Strivers
- Makers
- Survivors
- Probably could use Myers-Briggs or other things also
- One option is VALS typology
- Product Benefits Segmentation
- The different benefits or focuses of the population
- Easy for people who are hardcore fans to understand people with a different benefits package
- Product Usage Segmentation
- A more tangible expression of hardcore vs avid fans in how they spend their time & money
Integrated Segmentation Strategies & Tactics
Once you know your groups, you can market to them more effectively
The 24:48:48 strategy:
- Get essential fan data within 24 hours (name, zip code, phone#)
- Use buying data to calculate lifetime asset value of fan
- Communicate within 48 hours to establish marketing such as offers for promotions
- After all contacts, complete followups within another 48 hours to keep active 2-way communication