“Segmentation is based on the consumer and splits the markets buyers depending on their needs in the category.
Understanding of which needs that are most important on the market guides brands in segmentation, communication and media investments.”
Customer orientation is to start from the market’s needs – not your products.
» Segmentation identifies motivations and establishes target groups with different needs
Target groups with different needs have different challenges and potential. All brands can’t satisfy all groups.
» Segmentation quantifies the target groups value, competition, media consumption, etc.
The marketing plan can then be built based upon the target group’s needs, potential and challenges.