With all the fascination with new marketing concepts, digital technologies and new tactics, there continues to be one foundational issue that is proven and reproven to have a disproportionate impact on the value you create for your business: identifying the highest value source or sources of growth for your brand, product or service. Choosing the wrong target, or one of less value, will certainly lower your growth and return-on-investment potential. It might even fail completely. Traditionally we called this market segmentation but lately many of the most successful marketers refer to it as “demand landscape mapping.”
There are two critical questions to understand about this subject: Why is this so critical, and how can I do it much better? There are five questions that dive much deeper in to the “why?” as we leave the door open on the “how?”
▶ CAN ONE PRODUCT PLEASE EVERYONE?
This is a simple enough concept: How do you find the market that is most interested or in need of what you have to offer? Or if you are a new brand, find a need that is not adequately filled and create a better “mousetrap.” The key is to recognize that some people won’t be interested in you no matter what, and that’s OK. Find the ones that are.
▶ WHAT SEGMENTS PROVIDE THE MOST VALUE POTENTIAL FOR YOUR COMPANY?
This plays into today’s data-rich marketplace. Analyze the options and look for the one that has the most value to you, meaning it’s large and profitable enough for you to realize your financial goals, it’s reasonable from a competitive intensity standpoint and has a bright future.
▶ WHICH SEGMENTS ARE COST EFFECTIVE AND EASY TO REACH?
This one is not so obvious to most marketers. Even if you’ve found a larger and profitable segment that your product fits in perfectly, it may be very fragmented or very expensive to reach or serve.
▶ HOW CAN YOU CREATE A CLEAR TARGET THAT FOCUSES ON THE MOTIVATIONS THAT AFFECT CUSTOMERS’ DECISIONS, UPON WHICH YOU’LL BUILD YOUR MARKETING PROGRAM?
Understand the drivers of purchase so you can begin to select the tactics most likely to effect the behavior you desire.
▶ HOW CAN YOU POSITION YOUR PRODUCT OR SERVICE AGAINST SOMETHING OR SOMEONE?
When it comes down to developing your behavior, influencing tactics positioning is key. You have to know who you are aiming at to position it successfully. Usually you will be replacing something already in that person’s repertoire.
Read the original article at AMA.org.
This spring, we’re unveiling the AMA’s first ever intellectual agenda in our almost 80-year history that features what we believe are the “seven big problems” confronting marketing. The seven big problems will drive content for the entire AMA community: a multi-faceted and diverse group of professionals in marketing and sales, academic researchers and educators, and collegiate marketing hopefuls.
The AMA’s intellectual agenda seeks to serve as a big tent source of guidance and inspiration that includes both theoretical and applied knowledge that will ultimately provide actionable insights, frameworks, tools and resources for the AMA community. We’ve created a living document that can evolve along with the AMA community and the discipline of marketing itself.
–Russ Klein, AMA CEO