Let’s Segment Customers

First grad school presentation. Check!

In my Marketing Strategy class, we’ve been learning about conducting an analytical framework for marketing planning, and strategy for existing firms and markets, and also on ways to create new demand through innovation.

The final presentation of this class was to prepare and deliver a topic we learned that semester with some examples and I chose to do needs based segmentation.

The purpose of needs-based segmentation is to offer and feature product benefits that satisfy the needs, including price, of different sets of target customers. 

Grouping customers into segments based on similar needs and featured benefits also helps in solving a particular consumption problem. Customers would no longer have to repeat purchase or buy multiples of product to solve their needs.  

• For each needs-based segment, you have to determine which demographics, lifestyles, and usage behaviors make the segment distinct and identifiable. 

I found a study that lays out examples of needs segmentation in the luxury products industry. 

I also provided an exampels from my job at Grace in LA. Our products are very unique and are attractive to different segments.  We divide our customers into segments by wholesale chains, boutiques (firm demographics)  and b2c ( consumer demographics) . Certain segments push us to make certain internal decisions based on their needs. 

For example, the usage behavior of our customer helps us determine porduction orders, tradeshow events, and marktign materials that go with it. segmentign our wholesale businsees by need, we see some are influenced by cost,some prefer certain styles so we create liensheets with differetn cuts and styles to cater to their need.