Before you start honing your message, building personas or communicating your value, you need to know your market.
That’s why you need to understand segmentation. This simple Brand Clear tool gives you a clear way to define who needs you and why.
Download this tool by clicking here.
Segmentation is the process of choosing a space to play it. It’s probably the last opportunity you’ll have to make an active choice, as every step from here ought to be guided by the needs and desires of the customers who exist within the segment you’ve chosen.
Even so, your decision will be informed by the results of your market research (new tool for this coming soon) and the analysis you’ve made. Guesswork has no place in Segmentation.
Segmenting your market will reveal what groups, solutions, competition and alternatives already exist. It gives you the raw, fact-based material that goes on to inform your targeting.
It’s easy to confuse segmentation with targeting, so our tool is designed to provide a clear distinction between these actions.
To help demonstrate the practical use of our tool, we’ll invite you into an example.
Setting: You work for a manufacturer of large scale printing equipment
Market Research has told you:
- Your clients are happiest when you’ve been able to make at least one face-to-face meeting
- Sales of equivalent printing equipment have been rising, but your own sales have been in decline
- Businesses spending the most on equipment are larger, more established and more forward looking than their competitors
- Corporate Social Responsibility parameters in the coming years will begin to focus on sustainability, putting pressure on the viability of printing materials
Segmentation gives you a way to engage with these observations:
To minimise the pressure of changes to CSR and maximise your value to a business, you’ll want to be in a market where people need to print.
They don’t have a choice, it’s a key area of their business. What’s more, they also have to get it right first time as cost is a risk.
The increased sales elsewhere shows there’s money being spent. Your lack of sales shows you haven’t got the most effective customer base.
We know that large, established and future aware businesses spend more, so that’s the start of our profiling.
Perhaps we use our understanding of need to further define our market. Our segment will include only those businesses who are experiencing growth – we can use data from sources like the Office for National Statistics to look at employment rates over previous years.
We might do this because with many new employees comes a need for guides, materials, etc.
We could engage again with with the sustainability angle and characterise our segment as including business who have won a CSR award.
(Or, if we went negative, we choose those who have never won a CSR award. However, that might hint at other characteristics that could make for less than ideal clients)
Straightforward this – we know our happiest customers are those we can reach in person. Would that be 20 miles? 50 miles? It depends on our staffing and resources.
But essentially we’re going to define our market as including only those businesses we can realistically offer such face-to-face support to.
If we want to expand beyond that boundary then the process reveals we need other solutions, perhaps like local partners or affiliates.
However, should remote be our only option then we might need stronger relationships within the client business through a single point of contact.
Now we have a defined need, specific characteristics and an idea of the location of our ideal businesses we can move to positioning ourselves for them and begin building a target profile.
If you’d like to know more about our tools, ask away to email@example.com