Wednesday, January 20, 2010

Segmentation - A Good Recession Strategy?

What an exciting time to be a marketer. Every industry today is experiencing massive change - competitive shake-outs, industry consolidation, or drastically changing customer needs and behaviors. Change can be a launch pad for growth and an opportunity to do things differently, further your competitive advantage, and gain market share by evolving in new ways relevant to customers.

Marketing segmentation is a powerful strategy for companies experiencing significant market change. Matching your unique value proposition to the right customer segments can help you improve margins and gain market share - and on the flipside, changing needs may require you to adjust your value proposition.

Every marketer today should be asking themselves how has their customer landscape changed - what new emerging needs and values are driving customer behaviors, and has your customer segmentation been affected. By re-evaluating your segmentation strategy - which segments do you continue to invest in, which are no longer attractive, and what new segments may have emerged - you can better align your value proposition with the right customer segments. The same old segmentation efforts with the same old products likely will not position you for growth.