[Webinar] Rethinking Market Segmentation: Achieving Effective Segmentation to Drive Action and Results
 

[Webinar] Rethinking Market Segmentation: Achieving Effective Segmentation to Drive Action and Results

on

  • 529 views

Learn how market segmentation is changing and how to achieve effective segmentation that drives action and results in today's landscape.

Learn how market segmentation is changing and how to achieve effective segmentation that drives action and results in today's landscape.

Statistics

Views

Total Views
529
Views on SlideShare
185
Embed Views
344

Actions

Likes
2
Downloads
7
Comments
0

3 Embeds 344

http://www.greenbook.org 342
http://translate.googleusercontent.com 1
http://www.slideee.com 1

Accessibility

Upload Details

Uploaded via as Adobe PDF

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

[Webinar] Rethinking Market Segmentation: Achieving Effective Segmentation to Drive Action and Results [Webinar] Rethinking Market Segmentation: Achieving Effective Segmentation to Drive Action and Results Document Transcript

  • Rethinking Market Segmentation Achieving Effective Segmentation to Drive Results May 14th, 2014
  • 2 Where market segmentation starts – and often ends Why we slice up markets The New Guardrails • Objectives • Descriptive Tools • Activation Effective segmentation in action Conclusion Today’s Agenda Scott Laing Sr.Vice President Today’s Presenter
  • 3 Let’s say you’re interested in growing your sales of… …or…
  • 4 Your team decides to conduct a Market Segmentation study… …a time-tested friend and bedrock of marketing!
  • 5 The Start of the Project… What typically comes to mind as effective segmentation? A universal, cross-company model – everyone is a stakeholder and everyone is on the same page Detail, detail, detail – interesting, novel descriptors that excite Description drives action So, what’s wrong?
  • 6 Let’s Take a Step Back Through Market Segmentation, companies divide large heterogeneous markets into smaller segments that can be reached more efficiently and effectively with products and services that match their unique needs.* *From Kotler, Philip and Gary Armstrong, Principles of Marketing, Prentice-Hall. Segmentation: Key Market Segmentation Attributes It’s about driving growth!
  • 7 Guardrails for Effective Segmentation Define a growth-centered objective Don’t get lost in the description Don’t fear data integration
  • Dividing Markets for a Reason Principle: Specificity in objective will pay handsomely
  • 9 Flavors of Segmentation There are two possible problems to address via Market Segmentation. Each requires a very different approach. A Market for Your Product A Product for Your Market VS.
  • 10 What Does it Look Like? A Typical Model… Engaged Customers Strong Prospects On-the- fence Low- Interest Totally Uninvolved “Disengaged David” “Homebody Holly” “Questioning Quentin” “Nearly Retired Richard” “Polly the Pensioner”
  • 11 Principle: Define a growth-centered objective Always remember the promise of market segmentation: Finding a market focus and realizing efficient growth. Projects typically go “off the rails” when objectives multiply. A segmentation model designed to optimize channel selection will likely look different than one designed to optimize revenue based on price discrimination.
  • Identify Relevant Attributes Principle: Specificity in objective will pay handsomely Principle: Don’t get lost in the mechanics
  • 13 State of Segmentation Tools TIME “A diversity of wants” identified (1912) Demographics/ census (1950s) Psychographics (1960s & 70s) Emotional response (2010s) Public/social discourse (NOW!)
  • 14 “Nearly-Retired Richard” • Male head-of-household • Senior manager, F500 firm • 55 – 64 • 1 – 2 spendthrift children at top colleges • Average earnings $150,000+ • Wife is aspiring socialite/traveler • Lives in elite suburbs • Active saver/investor • Own home • Graduate+ education • Shop at high-end department stores, local specialty shops • Enjoy gardening • Read The Economist • Drive mid-range sedan Where does this fit into growth?
  • 15 Don’t Lose Sight of The “Why” …[M]arket segmentation has become narrowly focused on the needs of advertising [and increasingly skeptical management teams], which it mainly serves by populating commercials [and corporate meeting rooms] with characters that viewers can identify with – the marketing equivalent of central casting.* *From Yankelovich, David with David Meer, Rediscovering Market Segmentation, Harvard Business Review, February 2006 Rich descriptions are critical, but not the end game Growth is the end game • Requires description of an appeal/target • But also clear reach proposition When the next turn is unclear, people tend to focus on selling the idea internally, forgetting the whole point of doing segmentation in the first place.
  • 16 Principle: Don’t get lost in the description Let the “Why” of segmentation (growth) drive the “What” of segmentation (descriptors) Often, segmentation studies morph into customer profiling studies with little focus on a “target” to optimize. It is useful to identify a single piece of the business that will “activate” the segmentation
  • “Wonder Twin Powers Activate!” Principle: Specificity in objective will pay handsomely Principle: Don’t get lost in the mechanics
  • 18 So Many Sources of Data! Data overload Above logos are the property of their respective owners
  • 19 Alternatives Have Different Strengths
  • 20 Which Source is Best? Why stick with one? Historical temptation to choose one source, but we’re finding the power in integrating two – one for description, one or more for reach • Custom survey + syndicated database • CRM + custom survey • Syndicated database + CRM Description Reach Make sure you are integrating sources to meet your objectives
  • 21 Use the best sources for descriptive power and reach Choose descriptive elements based on path to growth Identify a single piece of the business that will “activate” the segmentation Principle: Don’t fear data integration
  • Segmentation in Action Principle: Don’t fear data integration
  • 23 Pharma Principle #1: Focus on a single objective Objective: Arm the direct salesforce with a tool to identify strong prospects Potential Pitfall: A rich descriptive segmentation based on attitudes was highly predictive of product interest & feature appeal, but attitudes not visible to salesforce Solution: A simple 3-question predictive segmentation model based on “visible” attributes constructed, yielding big targeting efficiency gain
  • 24 Major Insurer Principle #2: Simple, but powerful model Objective: Narrow SME prospect pool to reduce marketing costs, increase sales efficiency Potential Pitfall: Deep attitudinal descriptors provided insight into insurance appeal, but limited value in predicting uptake due to organizational policy Solution: “First cut” segmentation model based on purchase likelihood with message appeal added for color resulted in tight prospecting list
  • 25 High-Profile Publisher Principle #3: Application of extensive database Objective: Identify younger target group to grow subscriber base Potential Pitfall: Primary research study provided richness for identifying lifestyle profile and high-value editorial, but no robust reach mechanism Solution: Scoring potential subscriber database allowed for highly- targeted direct campaigns. Similar programs underway with additional titles
  • 26 Summary: Shifting Mindset for Effectiveness Cross-company segmentation model where everyone’s a stakeholder. High cost, long life More description is always better Assumptions about response are good enough Segmentation must have a single-minded objective to focus action. Focus on growth, nimble action Combine data sources for powerful description and reach Focus on the description that matters – what distinguishes good prospects
  • 27 About ORC International For 75 years, ORC International has provided companies around the globe the insight they need to solve their most pressing challenges.Today, our focus remains clear.We’re dedicated to driving your success through innovative research solutions in Customer Strategies, Employee Research, Strategic Research and Markets and Products- all supported by our unique Integrate Intelligence (i2) framework.
  • 28 Thank you! Questions? Scott R. Laing Sr.Vice President ORC International Scott.Laing@orcinternational.com To learn more contact us at : answers@orcinternational.com Visit our website at www.orcinternational.com Follow us onTwitter: @ORCIntl