Segmentation approach

1
Segmentation approach

• Problem 1 if you use person X situation, you
  cant get good information on any of these
  segments without primary research
• Problem 2 if you use person X situation, you
  create too many segments to work with

2
Solution to problems

• Work with mainstream segments and fringe area
  segments
• Make estimates and assumptions where necessary

3
Step 1 in approach

• Ask what are the largest groups in situations
• Examples for bookstore
• Students familiar with the bookstore stocking up
  on academic materials at beginning of semester
• Students time compressed, wanting holiday gifts
  for family and friends

4
Step 2 in approach

• What are the groups / situation most different
  from the mainstream?
• Bookstore Examples
• Faculty looking for research materials
• Students looking for entertainment items (DVDs,
  CDs, Videotapes, etc.)
• Students / faculty wanting healthy snacks

5
Step 3 in approach

• Students ignore this slide for the final we
  didnt discuss in class. Take a look at the next
  slide.
• What are the situations that most influence
  buying behavior of the largest groups i.e. come
  at this from the other direction
• Bookstore examples Students who are
• Bored, seeking stimulation
• Decorating a dorm room
• Looking for materials specific to their field
• Planning to stress out soon (e.g. during finals)

6
Re-cap of approach

• Identify the largest, mainstream segments. These
  are your central core segments
• Identify the segments furthest from the
  mainstream (without getting clearly outside your
  business domain). These establish the extremes
  of what you might have to offer.
• Other segments will be somewhere in-between. You
  decide whether there are any that must be
  specifically identified.
• Now youve probably got a workable number. Start
  assessing their attractiveness.