Strategic Market Segmentation Solutions by Rhyme & Reason

The right market segmentation approach requires an understanding of market dynamics, forces driving customer demand & the purchase process along with how different buyers integrate products into their lives or businesses.

Step 1: Identify groups of customers with similar needs & wants

Step 2: Describe these segments using various characteristics of people, purchase motivators, brand or product preferences

Step 3: Determine their relevant importance

Together with clients we determine the appropriate Basis of Segmentation for their Direct to Consumer or B2B customers. Demographic segmentation, behavioral, lifestyle or cultural for consumer. Market-based, needs-based, economy-based, tiered or ‘firmographic’ considerations are applied to B2B.

Good segmentation allows for better targeting of the value proposition & marketing communications.

Having established the basis for segmentation, our targeting approach first determines the relative importance for each group based upon:

SEGMENT SIZE & GROWTH

+ Number of customers, sales value

+ Annual growth in numbers and category spend

STRUCTURAL ATTRACTIVENESS

+ Intensity of competition, differentiation / USP

+ Suitability of value proposition

BUSINESS & MARKETING OBJECTIVES

+ Brand alignment, shared values

+ Experience / competencies to target this segment successfully

Quantitative & Qualitative target audience definitions are the final deliverable in R+Rs approach to market segmentation & targeting.