Preparing Market Segment Battle Map

byNancy Pliska Robinson, Ph.D.

Overview

Meaning of market segmentation

Segmentation: Linking needs to action

Using market-product grids or battle maps

When to segment markets

Steps in segmenting and targeting markets

Match customer needs

Greater profits

More growth

Retain more customers

Target communication

Gain share of market

Reasons to Segment Market

Market Segmentation Defined

Identification of buyers with similar needs -

similar buying behavior

Like a lemon or lime with a series of connected but distinct segments, each

with its own profile

Examples of market segments: age, gender,

income, lifestyle, education, occupation

Identify & Link Need for Product or Service to Action

Identify Nee

d

•Transportation need

•Computer need

•Food need

•Medicinal need

Identify Benefits

•Quality of product/service

•Features•Expense

s•Savings

in time or convenience

Produce

Solid Marketing Program

•Product•Price•Promoti

on

•Place

5 Steps in Segmenting Market

Form prospective buyers into segments

Form products/services

for sale into groups

Estimate size of market

Select target market

Take marketing actions to reach target markets

Criteria for Forming Segments

Substantial: Must have potential for increased profit and ROI

Measurable: Must be way to measure similarity of buyers by size or purchasing power

Differential: Buyers must be distinguishable

Accessible: Must be feasible to reach segment

Actionable: Effective marketing programs can be designed

Prepare Segmentation Battle Map

Segm

ent 1

Segm

ent 2

Segm

ent 3

Segm

ent 4

0

1

2

3

4

5

Metric 1

Metric 3Metric 1Metric 2Metric 3

C u s t o m e r s s e g m e n t e d i n t o g r o u p s

Product breakdown

“The battle for the customer’s mind.”

Implement Target by Positioning

Which dimensions of

your product/service

are most important?

Which brands are perceived as different?

Examine combinations

of product attributes.

Determine where there’s a

gap: part of market whose needs aren’t being met.

Understand where customers “position” your product in the market.

Summary

• Reasons to Segment Market• Definition of Market Segmentation• Link Need to Action• 5 Steps in Segmenting Market• Criteria in Forming Segments• How to Prepare Segmentation Battle Map• Implement Targeting by Positioning

All rights reserved. Robinson 360 2011.