[2] Interesting New Ways to Define and Segment your Market - 1 Interesting New Ways to Define and Segment your Market By Mike Boysen On Add Comment In

[2] Interesting New Ways to Define and Segment your Market...

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1 Interesting New Ways to Define and Segment your Market By Mike Boysen On August 12, 2012 · Add Comment · In CRM , Innovation , Marketing , Segmentation Every company has a definition of their market and every company also identifies certain segments in that market; even if it’s in someone’s head. But it’s becoming painfully clear that the old and convenient ways of doing this are ineffective and significantly limit the potential of your business. All we need to do is look at the results and we can see that both dollars and efforts are wasted in the more traditional ways of viewing and getting to the market. They simply don’t work if your goal is to create enduring value for your customers. As new channels – such as social media – emerge, marketers flock to them in droves, hoping this new access point will drive more valuable outcomes for their businesses, or their careers. Unfortunately, one-size-fits-all doesn’t work any better in social media than it did in email , print or another other media you can think of. In fact, one-size-fits-none ! Defining your Market Most companies define their market by product category . That is, they limit the market to those customers who purchase the category of software they make, or the category of service they offer, or the category of personal hygiene product. This makes perfect sense to them, because it’s the way all of their competitors define the market and it’s the way analyst firms define the market. It’s also the way the street defines the market, and everyone knows that you must live up to the short term expectations of the financial markets (excluding innovation premium theory). I recently read something that mentioned the buggy whip market which was referred to by Ted Levitt in Marketing Myopia . They knew that the buggy whip market was going to disappear, but were frozen with an inability to see that the transportation industry , which is the market they were actually in, would continue to grow. They missed an opportunity to add a new kind of value to their transportation customers because they were focused on buggy whips. You can keep improving them, but if there are no more buggies, there will be no one to sell them to. Perceived Market Actual Market Railroad Industry Transportation Industry Movie Industry Entertainment Industry Petroleum Industry Energy Industry CRM Software Industry Growth Management Industry We all face this dilemma, regardless of the industry we are in. For instance, I am in the CRM software market…or am I?
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  • Fall '14
  • Stoltman
  • Marketing, mobile radio products, buggy whip market

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