Marketing of the Innovation:Segmenting non existing markets Paul Millier Professor EMLyon Business School FITT – Fostering Interregional Exchange in ICT Technology Transfer – www.FITT-for-Innovation.eu Except where otherwise noted, this work is licensed under a Creative Commons Attribution 3.0 License.
What is segmentation? In cas of innovation, knowing the targeted market is essential but remains difficult because the market does not exist yet! Segmentation is a solution to find trade off between simplifying the reality and displaying the market complexity and heterogeneity When the market does not exist the so called Segmentuition™ must be used in place of the segmentation (method developed by Paul Millier) The Segmentuition™ is a mix of intuition and rationalization allowing to shift from an intuitive and unstructured vision to a logical construction of the market Partner Logo2 | 03/2011 Marketing of the innovation: Segmenting non existing markets
How to use Segmentuition™?Assuming that relevant data has been collected, the Segmentuition™ follows 4 main steps:1. Technical segmentation defining the applications i.e. the technical problems to be solved.2. Behavioural segmentation which means defining the clients’ behaviours i.e. what explains that the clients are interested (or not) in the innovation to be launched3. Crossing the applications and the behaviours as to get a segmentation matrix. The segments are in the non empty boxes of the matrix.4. Naming and quantifying the segments. Partner Logo 3 | 03/2011 Marketing of the innovation: Segmenting non existing markets
Why? The context for which it was developed is the context of innovation. The problem addressed is the lack of information. This was a problem because usual methods of segmentation do not work. After the implementation of the segmentation we can expect to build a relevant marketing strategy to break into the market. Partner Logo4 | 03/2011 Marketing of the innovation: Segmenting non existing markets
When? Who? When?The method should be implemented when the information is rare and the clients few. Itshould be implemented on demand before rolling out a new product or service in the market. Who?The different stakeholders who could use the method are: • Technology Transfer Officers (TTO’s) • Researchers • Marketers • Innovators • Start-up managers • External Consultants Partner Logo5 | 03/2011 Marketing of the innovation: Segmenting non existing markets
Suggested Readings Links to glossary:Marketing, Value Creation, Segmentation, market Suggested reading• MILLIER Paul : Développer les marchés industriels. Principes de segmentation Paris. DUNOD 1995• MILLIER Paul : Marketing the unknown. Chichester J; Wiley & Sons 1999.• MILLIER Paul : "Intuition can help in segmenting industrial markets" in : Industrial marketing management, may 2000.• MILLIER Paul - L’étude des marchés qui n’existent pas encore, Editions dOrganisation, Paris, 2002• MILLIER Paul : Stratégie et marketing de linnovation technologique Paris. DUNOD 2005 Partner Logo6 | 03/2011 Marketing of the innovation: Segmenting non existing markets