market segments & value propositions february 10, 2015
TRANSCRIPT
Market Segments & Value Propositions
February 10, 2015
Agenda4:30pm – 4:50pm (Discussion)
Segmentation & TargetingIdentifying the right customers
Value Proposition Development:Creating value for those customers
4:50pm – 5:30pm (Activity)
Value Proposition Building
SegmentationGroup
customers based
on similar needsProfile each
segment
TargetingAssess
attractiveness of
each segment
Select segment
s to target
Positioning
Define value
proposition for target
segmentsDevelop an action
plan
What is the market segmentation process?
Why is it so important?
1. It allows the firm to develop products/services that meet customer needs.
2. It identifies new opportunities to address unmet needs.
3. It saves money, time, and energy.
Segmentation benefits both buyer & seller.
How did the 2012 Obama campaign segment the market?
Geographic
Demographic
Psychographic
Behavioral
Benefits Sought
Segmentation is part science, part art.
Source: Compass Labs
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Segmentation variables in B2C markets
Variable Description
Geographic Country, City, Region, Urban vs Rural, Climate
Demographic Age, Income, Gender, Generation, Marital Status, Family Size, Occupation
Psychographic Lifestyle, Personality, Activities, Interests, Opinions,
Behavioral Usage Rate, Loyalty, Product Knowledge, Involvement, Decision, Purchase Occasion
Benefits Sought Convenience, Value, Safety, Status
Segmentation variables in B2B marketsVariable Description
Geographic Country, City, Region, Urban vs Rural, Climate
Firmographic Industry, Firm Size, Global/Regional, Ownership Structure
Buying Approach
Centralized / Decentralized, Purchase policies, Involvement of Decision Makers
Behavioral Volume, Loyalty, Attitude toward risk, Purchase frequency, Urgency
Benefits Sought Price, Product quality, Customer service, Relationship
How do this work?
Value Proposition Development
A value proposition is not a list of featuresInstead: A value proposition describes the benefits that customers can expect from your products and services.
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Begin by understanding your customer.
Jobs
Pains
Gains
And match them with your business.