Simple Segmentation Method for Marketers.

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.