The milkshake provided a near perfect solution to the

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unsatisfactory results. The milkshake provided a “near perfect” solution to the “job to be done.” Since the milkshake was thick, it came up slowly through the straw. The ingredients were such that the user would have a “full” feeling for a couple of hours.
The same milkshake had no customers later in the day precisely because it took too long to consume. Parents picking up their children from school and stopping for a quick snack wanted a drink that the child could sip quickly. When the company changed the recipe and came up with a “thin” milkshake, children simply loved it, and sales soared.The learningfrom this example is that companies needto understand everythingfrom the customers’ perspective. The typical organization invariably comes up with a product or service and then tries to find customers. If only organizations started with customers, the journey might be much easier and more satisfying to everyone.Next PageSegmentationSegmentation is the processof dividinga large heterogenous marketinto relatively homogeneous partsor segmentsthat you can reach efficiently and effectively with products andservices that match their unique needs.PILLARS of SEGMENTATIONGEOGRAPHICSDEMOGRAPHICSPSYCHOGRAPHICSBEHAVIORALCountryCityDensityLanguageClimateAreaPopulationAgeGenderIncomeEducationSocial StatusFamilyLife stageOccupationLifestyleAIO: activity, interest, opinionConcernsPersonalityValuesAttitudesBenefits soughtPurchase UsageIntentOccasionBuyer stageUser statusLife cycle stageEngagementDIGITAL DNAFIRMOGRAPHICSCONTEXTUALDIGITAL BODYLANGUAGE
Examples of segmentation can be divided in categories such as geographic, demographics, psychographics, and behavioral. Geographics might include country, city, density, language, climate, area or population. The digital DNA. Demographics might include age, gender, income, education, social status, family, life stage, and occupation. The firmographics. Psychographics include lifestyle, AIO (activity, interest and opinion), concerns, personality, values, and attitudes. The contextual. Behavioral includes benefits sought, purchase usage, intent, occasion, buyer stage, user status, life cycle stage, and engagement, otherwise known as digital body language.Next PageSegmentation ExamplesGeographic segmentation– many multi-national corporations segment global markets according to geography. IBM, Accenture, Oracle, Cisco, and Adobe have North America, Europe, Middle East, South Asia, Asia Pacific, and Latin American segments.Apparel manufacturerstypically segment markets based on gender and age. It is also possible to segment based on income – Nordstrom, Saks, and Burberry aim to attract customers who don’tmind high prices.

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