A Successful Segmentation

Unfortunately we can’t tackle the whole world
with a product launch.
It is simply too large for our resources.
So we segment and
target that slice of the population.

What determines a successful segmentation?
Sultan Kermally in Gurus On Marketing advises
“For segmentation to be successful,
it is important for a segment to be
large enough for it to be profitable;
distinct enough to differentiate;
homogeneous enough to prepare a marketing plan
and
measurable to determine
the effectiveness of marketing.”

I usually start with the first,
size for profitability.
It is easiest to measure
and is an absolute must.

Published
Categorized as Marketing

1 comment

  1. I don’t understand why it has to be one approach or the other. McKinsey just published a report in Research World which mentioned this. I summarized the findings here:

    http://www.tomhcanderson.com/2008/04/29/high-performing-companies-all-use-text-analytics-and-don%e2%80%99t-mix-their-segmentation-and-crm/

    Our segmentation methodology (Anderson Analytics), combines the best from CRM/DM, Behavioral and Emotive segmentation techniques. Good segmentation schemes have to be both strategic as well as actionable.

    -Tom

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