Marketing sales roundtable segmenting markets for success september 2001
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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 RoundtableSegmenting Markets for SuccessSeptember 2001


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Agenda

11:35 – Setting the Stage

11:40 – Introductions/Segmentation Challenges

11:50 – Roundtable Discussion

1:00 – Summary and Wrap-up


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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


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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


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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


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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


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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?


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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


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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?


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