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How to Segment a Market

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Arguably the most difficult but rewarding Marketing task. This is a high level presentation on how to segment a B2B or B2C market.

How to Segment a Market

  1. 1. How to segment aMARKET<br />Created by SimplyDigitalMarketing.com<br />
  2. 2. What is MarketSEGMENTATION?<br />Segmentation is the process of grouping together markets who have similar characteristics, needs and buying styles.<br />Markets can be consumers/customers/businesses/individuals/groups or a mixture of many. <br />
  3. 3. Why segment yourMARKETS?<br />Many reasons; here are two<br />1. Having well segmented markets sets the foundation for who you target and how you position your brand, products and services to them.(Segmentation, Targeting, Positioning- the STP process)<br />2. Quality segments gives you a chance of understanding how they might respond to your marketing activities, thus you can tailor your activities and messages accordingly.<br />
  4. 4. Stages ofSEGMENTATION<br />4 steps to start you off...<br />There is no substitute for comprehensive segmentation, however these 4 high level steps should help start you off in the right direction: <br />Define your market(s)<br />Map your market(s)<br />Understand your audience(s)<br />Form your segments (B2B, B2C, Both)<br />
  5. 5. 1. Define yourMARKETS<br />Gives clarity and focus<br />For each market, answer the following:<br /><ul><li> What is the market?
  6. 6. What is that market’s need?</li></ul>Note: You need a clear set of boundaries for each market; for instance, geographic area. Your markets should be broad, yet specific as there could be a number of ways in which to satisfy your audiences needs (not just yours).<br />
  7. 7. 2. Map yourMARKETS<br />Helps you understand the buying points <br />Map out your suppliers, distributors, retailers, contractors, final users and so on.<br />Plot out any decision points and break down of stock<br />
  8. 8. 3. Understanding yourAUDIENCE<br />Helps you understand the touch points<br />At what points do your audience come in contact with your business during the buying process?<br />
  9. 9. 3. Understanding yourAUDIENCE<br />Understand What, Where, When, How and Who?<br />Develop micro-segments on what is bought, where, when, how and by who. You will end up with 10’s of micro segments.<br />
  10. 10. 3. Understanding yourAUDIENCE<br />Who are the decision makers and influencers?<br />Split out your influencers and decision makers. They will need different messages.<br />
  11. 11. 4. Segment byCONSUMER<br />Customer/Consumer grouping<br />Group your decision makers and influencers as appropriate. Could be by demographic, geographic, psychographic, behaviouristic<br />* Based on 8 class levels<br />
  12. 12. 4. Segment byBUSINESS<br />Business grouping<br />Group your target businesses as appropriate e.g. Sector, Private, Public, Size, Location, Company age<br />
  13. 13. Criteria forSUCCESS<br />How you qualify your segments<br />Your segments should be:<br />Measurable<br />Accessible<br />Substantial<br />Unique<br />Appropriate<br />Stable<br />Source: CIM The Marketing Planning Process<br />
  14. 14. A FinalWORD<br />The segmentation process is arguably the most challenging, but insightful of all marketing tasks. This presentation only scratches the surface and further reading should be doneon each stage.<br />Marketing Plans by Malcom McDonald and Hugh Wilson has an excellent section on segmentation.<br />
  15. 15. About US<br />Free Digital Marketing Resources and insights!<br />WHO WE ARE Passionate Digital Marketers with years of academic and business experience. WHAT WE DO We are a leading Digital Marketing resource, inspired by simplicity and dedicated to keeping you up to date with SEM, VSEO, Social Media, E-Media and Display Advertising and lots more! Our site is packed full of free, useful stuff, for academics and professionals so please pay us a visit at:<br />www.simplydigitalmarketing.com<br />
  16. 16. InformationREFRENCES<br />Phil Megicks, Ray Donnelly, Graham Harrison. <br />(2009) The Marketing Planning Process. Elsevier, London.<br />

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