Customer & market segmentation
Ø Segmentation is the basis for marketing, distribution/sales and product plans, as well as of forecasts.
Ø Segmentation can be based on different things:
o Product / feature based
o Customer attribute based
o Christensen: “Job to be done”
Ø This work is intuitive, unstructured and not quantified at first, but should become increasingly disciplined and scientific as the company develops
Ø The product should be viewed as a solution to the problem or need that is the basis of the opportunity.
Ø It is essential to understand the nature of the complete solution – all the elements that will make the product functional and useful for the customer. There must be a well thought out model of how the customer will get the complete solution, and this view must be tested.
Ø Ideally, get the product in the hands of the customer as soon as possible; then develop features in an iterative way.
Ø The value of a product or solution is what the customer is willing to pay.
Ø Value, together with competition, is the basis of price.
Ø The “value proposition” is an articulation of that value. Ideally, it is quantified. And it must be clear and compelling.
Ø Marketing programs comprise many different things – what you choose should be driven by strategic objectives.
Ø The contribution of programs should be tested and measured to the extent possible.
Ø Market research – further deepens and refines customer understanding or analysis of competitors.
Ø Marketing collateral, ads, etc. require creative & production.
Ø Events & shows
Ø Key influencers: speakers, consultants, press …
Ø Choose the distribution strategy based on
o What makes most sense from the customers standpoint
o The economics – ultimate cost of selling – is it affordable?
o The approach that makes most sense from the long term perspective of the company (e.g., does it make sense to invest in a direct sales force to serve a particular market?)