This document presents a simple segmentation method for marketers. It involves identifying customers' buying criteria, including motivator and hygiene factors. Two differentiating motivator factors are then used to create a perceptual map, plotting customer segments in the four quadrants. Example segments are described as personas. While this is an academic tool, the document notes segmentation should be informed by additional company and market data to refine the process.

1. Rita
Batalha
uk.linkedin/ritabatalha
@ritabatalha
Simple
Segmenta,on
Method
for
Marketers

2. Segmenta6on
Defini,on
A
group
of
similar
customers
who
share
the
same
or
similar
needs
Criteria
for
need-­‐based
segments:
Ø Adequate
size
Ø Cluster
principle:
members
similar
and
dis6nct
from
members
of
other
segments
Ø Criteria
for
describing
must
be
relevant
Ø Segments
much
be
addressable

3. The
dangerous
of
socio-­‐demographic
segmenta6on
Two
men…
Ø Both
born
in
1948
Ø Both
grew
up
in
the
UK
Ø Both
have
divorced
and
re-­‐married
Ø Both
have
two
grown
up
sons
Ø Both
are
wealthy
Ø Both
like
to
spend
their
holidays
in
the
Alps
Ø Both
are
world
famous

4. The
dangerous
of
socio-­‐demographic
segmenta6on

5. Bases
of
segmenta6on
Who
buys
Market
Segments:
>
Big
enough
>
Reachable
>
Different
What
is
bought
and
why
Analysis
of
customer/
consumer
iden6ty
Socio-­‐economic
&
demographic
Psychographics
Geography
Benefits
Percep6ons
Lifestyle
Analysis
of
customer/
consumer
iden6ty
Subjec6ve
measures
of
response
Usage
&
Loyalty
Price
sensi6vity
Promo
response
Channel
loyalty
Objec6ve
measures
of
response
Personality
AVtudes
Lifestyle

6. Simple
Segmenta6on
Method
Buying
Criteria
+
Perceptual
Map
Mo9vators
factors
Good
taste
Accessible
Affordable
Promo
response*
Awareness
of
Healthy*
Word
of
Mouth
Hygiene
factors
Awareness
of
Healthy
High
High
Promo
Response
Low
In
good
shape
Occasional
Consumer
Mainstream
Price
Sensi,ve
Consumer

7. Buying
Criteria
+
Perceptual
Map
Buying
Criteria
Defini,on
Mo9vators
and
Hygiene
factors
that
are
needed
for
a
customer
to
make
a
buying
decision.
Buying
Criteria
Mo9vators
factors:
superior
characteris6cs
to
buy
from
our
brand
or
a
compe6tor
Hygiene
factors:
won’t
win
business
because
are
vital,
but
could
cause
business
loss

8. Buying
Criteria
+
Perceptual
Map
Perceptual
Map
Defini,on
Visual
technique
that
aBempts
to
display
the
percep9ons
of
a
poten9al
customers
towards
a
product/service
Perceptual
Map

9. STEP
1:
Buying
Criteria
STEP
1:
Ø Write
down
all
of
your
customer’s
buying
criteria
Ø Divide
into
two
groups:
Ø Hygiene
factors:
essen6als
to
be
in
the
market
Ø Mo6vators:
desirables
that
contribute
to
buying
decision
Ø Put
a
“*”
by
those
mo6vators
factors
on
which
customer
vary
(differen6a6ng
mo6vators)

10. Example
of
Buying
Criteria
Product:
SoK
Drink
Hygiene
factors
Mo9vators
factors
Good
taste
Accessible
Affordable
Promo
response*
Awareness
of
Healthy*
Word
of
Mouth

11. STEP
2:
Perceptual
Map
STEP
2:
Ø Choose
two
mo6vators
factors
on
which
customers
vary
making
sure
they
are
independent
from
each
other
Ø Make
them
the
two
axes
of
a
perceptual
map
Ø Plot
some
of
your
customers
and
where
they
appear
on
this
map.
Are
there
customers
in
all
four
corners?
Can
you
think
of
four
clusters
of
customers?
Ø If
ofen
helps
to
think
of
specific,
named
customers
Ø Give
the
segments
descrip6ve
labels

12. Example
of
Perceptual
Map
Product:
SoK
Drink
Low
Coke
Fana,c
Awareness
of
Healthy
High
High
Promo
Response
Low
In
good
shape
Occasional
Consumer
Mainstream
Price
Sensi,ve
Consumer

13. Personas
(example)
SoI-­‐Drink
Fana9c
Kate
is
a
marke6ng
student
who
loves
sof-­‐drinks
and
drinks
at
least
two
pints
of
Coke
on
a
daily
basis.
She
doesn’t
like
exercise
or
sports
-­‐
She
enjoys
fashion,
indie
cinema
and
photography.
In
good
shape:
Pete
is
a
33
year-­‐old
personal
trainer.
He
is
not
a
big
fan
of
carbonated
drinks,
he
prefers
natural
juices
or
sports
drinks.
He
trains
5
6mes
a
week
and
prac6ces
several
sports
including
body
building
and
surf.

14. Considera6ons
• This
method
is
a
simple
academic
tool
to
help
the
segmenta6on
process.
• All
segmenta6on
methods
should
be
complemented
with
company’s
and
or
market
data.
Example
of
market
sources
include:
DataMonitor,
Mintel
and
Keynote.
• The
rise
of
customer
insight/analy6cs
and
CRM
has
helped
to
refine
the
segmenta6on
process.
CRM
systems
can
provide
valuable
informa6on
to
complement
the
segmenta6on
project.