[You
can drive your business or be driven out of business. B.C. Forbes]
Does
your company suffer from any of the following marketing deficiencies – fuzzy
business mission, unclear objectives, information that is not decision
oriented, lack of agreement as to segmentation’s real role in the organization,
products/services that reflect corporate desires rather than customer needs,
unfocused IMC strategy, and/or failure to attack niche markets and customize
offerings?
Over
the years, many top B2B marketing executives have asked me how to build and
implement a true segmentation-driven culture in their organizations. Based
on my more than 20 years of experience as a professor, researcher, and
consultant, here are a few of my thoughts on how to get the segmentation
process in high gear.
1. Create
a 1-day segmentation training workshop for the marketing group to generate
excitement and stimulate project development. This will lead to a set of
specific, market-based strategic initiatives and research opportunities. Bayer
Diagnostics, Citrix Systems, Motorola and other companies have implemented such
a plan.
2. Begin with 3-5 small, focused and
low-cost initiatives to demonstrate success and build enthusiasm. Realize that
all segmentation projects may not be a resounding success (good news -- most
will be if properly designed and executed). Cordis, a Johnson & Johnson
company, benefited from the strategy of hitting many singles rather than going
for grand-slam homeruns.
3. Review previous segmentation studies
and make sense of the summary reports. Via a meta-analysis methodology, a fresh
set of objective eyes can add significant value to good work and extend
segmentation reports buried in computer files or file drawers. At one time,
Blue Cross Blue Shield of Florida had undertaken 18 segmentation studies with
no synthesis, integration or strategic analysis.
4. As Intel learned, segmentation
audits with marketing managers, channel members and customers can pinpoint
current and potential problems as well as overlooked market opportunities and
niches.
5. Successful segmentation means being
able to answer these 6 “what” questions -- what do you want to accomplish? (e.g., find new markets, get better customers, upgrade
business relationships, align products to customer desires, create a
segmentation model/typology, etc.); what methodologies will help you get the
necessary information?; what is unique about your segmentation view of
the world?; what is your budget?; what
is your timeline?; and, what are reasonable
expectations for the work?
I leave you with 5
thoughts to share with your management team to get them inspired and on-board
to invest in segmentation thinking.
> I am convinced that market leadership is
dependent upon how successful firms are at defining and selecting markets
appropriate to their capabilities, resources and competitive situation.
> Segmentation findings provide a systematic
basis for controlled market coverage as opposed to the hit-or-miss, random
efforts of mass or unfocused marketing.
>Segmentation-based marketing is the essence of
sound business strategy and value creation.
>Segmentation will continue to grow in stature
as a fundamental marketing tool and foundation for marketing strategy in
business organizations, large and small.
> A more thoughtful approach for market
selection can assist marketers design winning target marketing strategies.
Realize that firms in all industry sectors are discovering the power of strategic segmentation as a marketing tool for attracting and retaining customers in fast changing, globally competitive markets. How about you?
