How to use Jobs to be Done to segment markets

1. Doing it Right
Define a Market and Discover Growth Opportunities

2. Why does this matter?

3. cbinsights.com

4. cbinsights.com

6. DIDN’T KNOW WHAT
BUSINESS THEY WERE IN

7. DIDN’T KNOW WHAT
BUSINESS THEY WERE IN
DEFINED MARKETS WRONG

8. So…what is a market?

9. So…what is a market?
Is it a type of person?
Is it a product category?
Is it a technology?
Or something else…?

10. To answer this question, we
should look at what
consumers actually consider as
competition when they shop…

13. Parents trying to pass on life lessons to their children
Solutions that can be “hired”

14. Consumers who desire a type of progress
(Consumers with a Job to be Done)
Products they can use to make progress

15. Consumers who desire a type of progress
(Consumers with a Job to be Done)
Products they can use to make progress
The market is….
Demand
(as a Job to be Done)
+
ALL the supply that can be hired for
that demand

18. Professionals who want to be inspired with advice from someone
whom they respect
Solutions that can be “hired”

19. How did Clarity’s market definition change?
Old Way
Products that offer consumers a
similar function
New Way
Products that offer consumers a
similar progress

20. How did Clarity’s market definition change?
Old Way
Products that offer consumers a
similar function
New Way
Products that offer consumers a
similar progress
Revenue potential grows…
…but so does your competition

21. Defining competition outside of product
categories is not a new idea….
Moreover, [the types of products you compete against]
are transient by nature. In the case of retail trade the
competition that matters arises not from additional
shops of the same type, but from the department store,
the chain store, the mail-order house and the
supermarket which are bound to destroy those
[monopolies of product types] sooner or later.
Joseph Schumpeter
Capitalism, Socialism and Democracy
1942

22. Alternative market segmentation
typologies
Demographic Psychographic Behavioral Customer Jobs
(Demand side only)
ODI
Markets are based
upon people who
share..
Physical and situational
attributes
Activities, interests, and
the opinions
A behavior when they
buy things
A desire for a positive
change in their life-
situation
Who engage in a
particular task
Example Female
Aged 45-65
Married with children
Dealing with issues of
weight gain
Household income
$100K+
Concerned with health
and appearance
Wants a healthy
lifestyle, but doesn’t
have much time
Enjoys going online in
the evenings, big fan of
Pinterest
Buying gifts for
Christmas
whitening of teeth,
repairing split ends
(benefit segmentation)
“I always drink
Coke” (Brand loyalty)
Getting control of a
sales that is starting to
fall apart
Having financial stability
Be able to use market
news as a competitive
advantage
Interventional
cardiologist who want
to restore blood flow in
an artery
Patients who want to
infuse prescribed fluids
Tradesmen who want
to cut a piece of wood
in a straight line

23. Defining a market as progress,
helps you…
Size markets more accurately
Determine revenue potential
Know who you’re really competing against
Create effective marketing and product strategies
Create internal alignment around what business
you’re really in

26. What market(s) does Weber
compete in?

29. What market(s) does DeWalt
compete in?

30. Upgrade your user, not your
product.
Don’t build better cameras, build
better photographers.
—Kathy Sierra

31. Defining markets in terms of progress helps
you know what business you’re really in.
This helps you…
Understand “market needs”
Find growth opportunities
(new sources of revenue )
Know who your real competitors are
(so you can best learn what consumers value)

32. Thank you
@alanklement
alanklement.com
idealizedinnovation.com