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Marketing & Sales Roundtable Segmenting Markets for Success September 2001

Marketing & Sales Roundtable Segmenting Markets for Success September 2001. Agenda. 11:35 – Setting the Stage 11:40 – Introductions/Segmentation Challenges 11:50 – Roundtable Discussion 1:00 – Summary and Wrap-up. Setting the Stage. Segmentation Challenges

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Marketing & Sales Roundtable Segmenting Markets for Success September 2001

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  1. Marketing & Sales RoundtableSegmenting Markets for SuccessSeptember 2001

  2. Agenda 11:35 – Setting the Stage 11:40 – Introductions/Segmentation Challenges 11:50 – Roundtable Discussion 1:00 – Summary and Wrap-up

  3. Setting the Stage • Segmentation Challenges • What do we mean by segmentation anyway? • Evolving segmentation strategies over time • Today’s Objective • Bring people together - exchange ideas

  4. Positioning and Branding Market/Customer Segmentation Competitive Differentiation Market Vision Strategy Evidence Market Entry Customer Segment Critical Need and Total Product Requirements Market Drivers Positioning StrategyStatement Market Segment TechnologyEnablers Total Product Assets Company Total Product Solution’s Potential Differentiators Customer Segments Customer/End-User Problem(s)Definition Technology and Total Product Roadmap Competitors’ Total Product Solutions’ Potential Differentiators Critical Needs Applications Partnerships Barriers to Adoption Company Product/Service Match Product/Market Category Business Model Market Entry Customer Segment Roadmap and Market Segment Leadership Roadmap Company Differentiator Mission Statement (Functional) Programs POSITIONING STRATEGY BRANDING STRATEGY

  5. Customer Segmentation Overview Demographic Characterization (Objective) Psychographic Characterization (Subjective) • Market, Product Category • Application • Functional Responsibility, Title • Vertical Industry • Channel Preferences • Company Size • Geographic Location • Business Infrastructure • Criticalness of Need • Buying Decision Process, Influencers • Technology Adoption Cycle Value Profile • Corporate Culture • Barriers to Adoption Actionable Segmentation Customer Segment Problem Test and Refine

  6. Market and Customer Segmentation: A Model Market Segment Customer Segment ? Customer Segment ? Customer Segment Market Entry Customer Segment ? Market Entry Customer Segment Customer Segment ? Customer Segment ? Market Segment

  7. Establish Market Segment Leadership Road Map Customer Segment #4 Customer Segment #2 Customer Segment #5 Market Entry Customer Segment Market Segment Ownership, Mainstream Market Access Customer Segment #6 Customer Segment #3 Customer Segment #7 • How many customer segments can the company support? • For how many customer segments can the company supply (total product) strategy evidence?

  8. Who is the “Customer”? End User (e.g. Design Engineers, SW Developers) Direct Sales Force Company Product(s) Channel Budget owners (e.g. Buying decision influencers, Executive Management) Customer Segment • Customers = individual people who will use product as designed • Customers = companies • Customers = buying decision influencers, partners • Customer Segments = groups of people who will use the product as designed

  9. Market/Customer Segmentation: Some Tests • Shared problem? Same way of describing it? • Same level of criticality to problem? • Same total product solution will solve that problem? • Same channels? • Same/similar titles/responsibilities/involved in buying decision? • Predictably responsive to same messages? • Accessible through same organizations, books, conferences, etc.? • Fits within analysts’ segmentation schemes? • Self-referencing? (rapid ‘Buzz’ development?) • Measurable & substantial group An Actionable Market Entry Customer Segment: Some Tests • Problem is very critical to them (“must have”)? They know they have (self-diagnosed) • References are highly leverage able into other customer segments? • Company differentiator matches that critical need exactly?

  10. Presenters • Patty Burke, Consultant Market Focus patty@mktfocus.net 408-398-4921 • Rosemary Remacle, Consultant Market Focus 408-244-0412 rosemary@mktfocus.net

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