Effective Market Segmentation

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Not all people in the same demographic group are the same. You can’t go to a data broker and ask for managing directors who drive the same car, support the same team and enjoy the same hobbies, because that kind of segmentation doesn’t exist. In this Vlog, Grant explains what you need to do about it.

Let me tell you about two guys.

They were both born in 1948, grew up in England, have been married twice, have two kids, are wealthy, and they both like dogs.

The problem is, one of them’s Prince Charles; the other one is Ozzy Osbourne.

That is the limits of market segmentation. Although they’re in the same demographic group, clearly Ozzy Osbourne and Prince Charles are going to have some different buying habits. It’s not that demography is obsolete; it’s that to truly understand our customers we have to go further. In a post-materialist world, attitudes, values, and behaviours are just as important as demography. So how do you segment for those?

Well, you’re not going to go to a data broker and ask for managing directors with a certain value set. So what do you do?

We live in a world today where our major routes to markets are the media channels that we own; our website, our blogs, our video channels, our social media pages. Owning media, forces you to take a position. In business it is no longer enough to just be good at what you do. You have to believe and stand for something.

It’s being definite and putting across what you believe and stand for that will segment people by attitude and behaviour. There will be people that visit your website that are turned off by your opinions, but they are prospects who wouldn’t buy from you anyway.

They’re the leads that lead to endless phone calls and meetings and proposals and never go anywhere. On the other hand, those people who visit you and find that your opinions resonate with them would more incline to buy.

So, if you’re selling dog products, there is a chance that Prince Charles and Ozzy Osbourne have the same value set. On the other hand, if you’re selling a music streaming service …

There may be small changes to the spoken word in this transcript in order to facilitate the readability of the written English

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