| Consumer
segmentation should serve as the foundation for strategic decision
making. |
| • |
Create
a structure for understanding groups of consumers with similar needs. |
| • |
Define
the drivers and barriers for business success. |
| • |
Provide
insights that can be a basis for strategy. |
| • |
Serve as the basis
for a planning framework that depicts different consumer markets.
|
| Segmentation
should be based on, and help further define, the business frame
of reference. |
| • |
The
business frame of reference is usually larger than an individual
product category.
|
| Segmentation
defines a market based on consumer needs and attitudes. |
| • |
Should predict behaviors
and link to demography.
|
| • |
Needs (what consumers
value) must be separated from benefits (what brands offer).
|
| The
"what" and "why" of category participation have
to be separated from the "how." |
| • |
Need to determine which
dimension is most relevant for a given category and understand
how they interact.
|
|
The context, primarily
situations, is most defining of specific motivations.
|
| • |
A consumer segment
in a specific situation defines a need state.
|
| • |
Behavior and product/brand
choice should be captured in the context of a specific need state.
|
| • |
Motivations for choice
and barriers often vary considerably by need state.
|
|
Segments and need states
are the context for all product and brand understanding.
|
| • |
Brand development and
positioning, as well as product development, are optimal when
done against a target (segment and/or need state) where needs
and motivations are most similar and clearly defined.
|
| Segmentation
research is "point in time" understanding. |
| • |
However, segments based
on consumer needs are relatively stable.
|
| • |
Segments may migrate
or change if the marketplace changes dramatically, e.g. major
competitors or new benefits emerge.
|
| • |
Consumers are more
likely to transition to different segments over time if their
needs are more lifestage-oriented.
|
