Segmentation
How to tell which approach is most effective for which target group?
Consumers are a varied lot and desire various things. It’s not unusual for similar people to buy different products and very different people to use similar services. But a company that treats all potential customers in the same way speaks to everybody, and thus to nobody.
The average shopper in a Slovenian household is three quarters female and one quarter male, has a high school education and one year of college, and brings home approximately 500 euros on the 1st of every month. This shopper drives around with her (or his) family in a car and a half, and then returns to a suburban apartment, where she feeds one third of a cat and one third of a dog. She (or was it he already?) prefers food that is strong, filling and also low in calories. Her taste in art is eclectic and she prefers paintings of nature, a little girl and an abstract splatter of color. She doesn’t have an opinion on most things and her most common response is “I don’t know.”
When we accept the fact that average consumers and average people don’t exist, we can use market and consumer segmentation to:
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increase marketing effectiveness,
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generate greater customer satisfaction,
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create savings,
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and to identify strategic opportunities and niches.
Even when a company can afford to target an entire market, it is more successful if products and communications are adapted to individual segments.
Our approach
At Valicon we always start our market and consumer segmentation with a detailed understanding of the industry and category of the client in question. We follow this up with the client’s needs – what kind of segmentation will deliver the most benefit to our client?
We don’t use just one segmentation, rather we combine possible starting points, using both qualitative and quantitative approaches. We are well aware that only creative market and consumer segmentation strategies can provide our clients with the strategic edge they are looking for.
Our clients regularly use Valicon segmentation and positioning assistance to develop the most profitable market position and to recognize the most profitable (potential) segments.