“Customers” are NOT identical. A “market” is only a corral of market segments. Until business leaders fully accept that fact, businesses will not do as well as they could, probably flounder at some stage, and ultimately fail as their competitors (who DO “get it”) out-manoeuvre them.
The Most POWERFUL tool in a business strategist’s arsenal is Market Segmentation
For years I have used market segmentation to successfully “breakthrough” and improve the direction of employers’ and clients’ businesses. Market Segmentation is the “secret sauce” which helps businesses find the best customers.
Multi-million-dollar outcomes have followed market segmentation. It simply is the single most powerful tool in the marketing manager’s arsenal of marketing tools.
Identification of market segments almost guarantees optimal decision-making
With superior segmentation, you can identify attractive market segments so you can target and position your marketing mix and best satisfy the needs and wants of your “preferred” primate target audience prospects. This helps you “marry” your capabilities and appeal to the potential customers who desire your unique offering. (Every offering is unique, but that’s another topic.) Market Segmentation secures sustainable competitive advantage and market dominance.
Better customer insight and segmentation
Using proven market research methods, Market Segmentation means you’ll best be able to deliver differentiation strategies that achieve brand loyalty and brand preference.
You can get insight into where your profits come from, how to improve them, and how to best spend your marketing budget to reap the greatest returns.
You get insight and direction for decisions regarding:
* Distribution strategies and channel management
* Product management strategies and brand management
* Pricing and discounting strategies
* Improving demand & identifying high return customers
* New product development
* Brand Equity movements and brand portfolio opportunities
Market segmentation studies help identify opportunities and threats, competitors and trends… all helping you maximise your competitive marketing advantage.
Are you doomed, or are you set up for success?
Outside of micro businesses (under $5M p.a.) if your business hasn’t undertaken a proper, professional segmentation study in the past three years, you’re cruising for a bruising.
Worse still, if you (or your business leaders) think “marketing” is a word that accurately describes “advertising” and/or “promotion”, you’re likely in for, or already experiencing, a world of pain!
Almost all of the most successful businesses in the world, certainly the most profitable and powerful companies, all undertake annual or bi-annual segmentation studies. It is typical to find businesses that have failed who neither understand the definition of marketing or undertake (proper) market segmentation.
When management meetings happen and someone says, “Everyone wants…”, “Nobody will…” or “Buyers prefer…”, you NOW you’re in trouble: Subjective opinion is no more than unsubstantiated assumption, and “assumptions are the mother of all mistakes”.
It makes perfect common sense to ask… to ask enough people to know, and then if you ask the right questions you get the right answers , and if you ask people what they want and they tell you… and you LISTEN… then it is an effort to go wrong.
Remarkably, this common sense escapes many operational executives who get caught up in micro-economic detail and “can’t see the wood for the trees”.
I wonder if this could explain why businesses fail, and why corporations don’t experience ongoing success and longevity.
Do you agree? Please comment and let’s discuss?