Segmentation

Needs-Based Segmentation

Segmenting customers based on their specific needs.

Step 1 of Needs-Based Segmentation

Identify the full combination of needs that the product satisfies, both positive and negative.

Step 2 of Needs-Based Segmentation

Identify different groups of people (segments) who possess the identified needs.

Step 3 of Needs-Based Segmentation

Describe the segments by measuring their size, tailoring the marketing mix for reach, and selecting target segments.

Differences within Product Category

Identify central product category needs and consider other relevant needs they may have.

Combine Needs in Segmentation

Look for segments of consumers seeking to achieve goals across different product categories with a single product.

Solve Problems Strategy

Identify goal combinations without good existing solutions, often requiring creative or technological innovations.

Observation in Segmentation Strategy

Spend time with consumers as they use products/services naturally, asking questions to gain insights.

Ethnography

Studying consumers in their natural environment for insights during product interactions.

Netnography

Online observation of consumers through message boards, blogs, etc., to gain insights into their behavior.