Everything you need to know about marketing segmentation, from the marketing experts at Adashmore Creative. This presentation helps you figure out where to start, factors to consider, best practices, and how to use segments to your advantage.

1. MARKETING
SEGMENTATION

2. WHERE TO START
What you
need to
know

3. BEFORE TRYING TO SEGMENT
 Conduct a solid SWOT analysis
 Strengths
 Weaknesses
 Opportunities
 Threats
 Conduct a STEP analysis
 Social
 Technological
 Economic
 Political

4. BEFORE TRYING TO SEGMENT
 Know your market opportunities
Present Projects
Present
Markets
New
Markets
New Products
Market
Penetration
Product
Development
Market
Development
Diversification

5. QUESTIONS TO ASK YOURSELF
 What should be evaluated first?
 More profitable to retain customers
than find new ones
 Markets close to home are more familiar,
easier to respond to

6. WHAT IS A MARKET
 A group of potential customers who have similar
needs and are willing to purchase goods or
services to satisfy those needs.
 Generic market: a market of customers with
generally similar needs.
 Example: Transportation Marketing for City – buses,
trains, cards, bicycles, walking, and all methods for
getting around town
 Product market: market of customers with similar
needs
 Example: Laptop Computer Purchasers – Microsoft,
Dell, Apple, Fujitsu, etc.

7. FOUR ASPECTS OF A PRODUCT MARKET
 What: Product Type
 To Meet: Customer needs
 Who: Customer segments
 Where: Geographic region
Example: Marketing advisory services for mid -sized
enterprises in North America with limited budgets
Now to segment further…

8. HOW DO YOU SEGMENT?
Factors to
consider

9. CRITERIA FOR SEGMENTATION:
DEMOGRAPHIC
B2B
Annual revenue
# Employees
Industry
# Locations
Years in business
Markets served
Products/services
Job title
Level of experience/seniority
B2C
Age
Income
Marital status
Education
Family Size
Gender
Geographic location
Social status
Occupation

10. CRITERIA FOR SEGMENTATION:
PSYCHOGRAPHIC
B2B
Resistance to Change
Diversification oriented
Open minded/rigid
Decision making process
Early adopter/follower
Growth oriented/static
Technology sophistication
Professionalism
Require referrals
Awareness of competitors
Risk aversion
Loyalty
Market/Product Focus
B2C
Brand preferences
Price sensitivity
Conservative/Liberal
Enviro-friendly
Hobbies
Lifestyle
Information sources
Service preferences
Buy based on trends
Spontaneity
Influenced by peers
Relationship importance

11. CRITERIA FOR SEGMENTATION:
BEHAVIORAL
B2B
Website visits
Responses to marketing
Purchasing methods
Association memberships
Internet usage
Social media groups
Collateral views/downloads
B2C
Purchase history
Where they shop
Type of store preference
Association memberships
Internet usage
Impulsiveness

12. CRITERIA FOR SEGMENTATION:
ENVIRONMENTAL
B2B
Technology landscape
Purchasing power
Management practices
Purchasing process
Business culture
B2C
Country of residence
Political climate
Currency
Payment methods
Shipping & receiving
Languages spoken

13. BEST PRACTICES
Two step
process

14. DETERMINING VIABILIT Y
 Size: Is it large enough to pursue?
 Expected Growth: Small markets may be
OK if there is room to grow
 Competitive Position: low competition
is an attractive market
 Cost to reach: is this market accessible
with your tactics?
 Compatibility: how aligned is this market
to our goals?

15. FIRST STEP OF SEGMENTATION
Name broad and minor criteria
Market Segmentation Criteria 1
Minor 2 Minor 1
Minor 3
Market Segmentation Criteria 2
Minor 1
Minor 2
Minor 3

16. SAMPLE: SIZING
Total Size: 2,429,133
5-100M Revenue
0-5M Revenue
Canada
2,496
184,953
73,895
US
International Markets
100M+ Revenue
29,054
1,204,493
784,960
Australia
Company Size (Revenue)
1,495
78,395
69,392

17. SAMPLE: SEGMENTS
Total Size: 2,429,133
Company Size (Revenue)
Canada
US
Australia
International Markets
100M+ Revenue
5-100M Revenue
North America Corporate:
1,420,996 mid-sized and large
corporations in USA & Canada
Australia Corporate:
79,890 mid-sized and large
corporations in Australia
0-5M Revenue
Small business:
928,247 small
businesses in
USA, Canada &
Australia

18. POSITIONING AND
COMPETITIVE
DIFFERENTIATION
How to use
segments
to your
advantage

19. WEIGHTING SEGMENTS
 Competitiveness
 Ability to differentiate
 Competitive Intensity
 Barriers to entry
 Market Opportunities
 Market size
 Growth rate
 Profitability
 Attractiveness
 Strategic & technical fit
 Capabilities
 Maturity and timing

20. NEXT STEPS
 Should you focus on some segments
more than others?
 What are you trying to accomplish?
 Analyze the target market to identify
where competitors are positioned.
How does your product compare?
 Which attributes are most important
to customers?
 How can you reach these people?