Why do Segmentation?

Segmentation achieves clarity, efficiency & effectiveness

  • Focussed targeting is more likely to improve marketing efficiency and effectiveness than unfocussed marketing.
  • When you can accurately identify and address the right value proposition for a target, you improve your chances of winning their business.
  • When you improve the relevance of the message, you will increase the proportion of positive responses.
  • When success measurement reflects responses from a narrow target segment, you increase the validity of reporting.
  • When you improve the accuracy of success measurement, you can increase the accuracy of planning.
  • Segmentation offers improvements in corporate efficiency and effectiveness because it deliberately ignores distractions that do not fit into any segment.

Segmentation avoids wastage & ambiguity

  • Avoid overspill: exclude targets that are not in the segment.
  • Avoid wasting resources: time, effort, manpower, budget.
  • Avoid false reporting: non-reactions from targets outside the segment confuse the accurate interpretation of success measurement.
  • Avoid weak planning: this is the inevitable result of unfocussed targeting and ambiguous success measurement.

 

 

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