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What's
the best way to identify market segments? While many marketing managers
use demographics, corpographics, attitudes, behavior, heavy users/light
users, we believe it's necessary to look at hundreds of different ways
to segment the market, using all possible market drivers—from category
involvement and product preference motivators to media habits and psychographics.
By using all relevant factors, you can create distinct proprietary segments—segments
your competitors do not know exist—and then rank them by current
and estimated profitability.
Here's our Top 10 list of criteria
we've found to be most useful in identifying financially-optimal targets:
- Decision-Making Power
The more responsibility the target has for making a buying
decision, the more valuable the target.
- Sales Potential
The more a target buys or uses from the product category,
the more valuable the target.
- Growth Potential
The more a target group is growing, the more valuable
the target group.
- Lifetime Value
The more product a target is expected to buy over its
lifetime, the more valuable the target.
- Retention Potential
The more likely it is that a target can be economically
sustained and, therefore, retained over time, the more valuable the
target.
- Common Motivations
The more homogeneous and preemptible a target's needs
are, the more valuable the target.
- Problem Potential
The bigger the problem the target has that the marketer
can solve, the more valuable the target.
- Responsiveness
The more a target responds to a company's marketing efforts,
the more valuable the target.
- Media Exposure Patterns And Media Costs
The easier and less expensive it is to reach a target
in media, the more valuable the target.
- Findability
The more easily a target can be identified in databases,
the more valuable the target.
This list of criteria for an optimal target is one of the many Copernican
intellectual properties
that differentiate our work.
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