Segmentation Vives Kortrijk

Transcription

1 Segmentation Vives Kortrijk Contact details: International business development 24 October

2 Segmentation is the first BMC building block International business development 24 October

3 Segmentation: Why? Find those customers that allow you to create value WHO (to serve) comes before WHAT (to promise) Trend: segment of one, though: Creating customized products for an individual customer is expensive Solution Group the demand in homogeneous sets Unique product per client = bankruptcy? Economics of repetition: Solutions based on building blocks (components in products or modules in services, useful for a set of customers with similar core needs) International business development 24 October

4 International business development 24 October

5 Adidas 3D Futurecraft International business development 24 October

6 Segmentation: How? Define the purpose of segmentation Group customers around a uniform way to serve them (through the business model) Segmentation starting point: For Value Proposition Design (= market needs, jobs to perform, pains, gains) For Sales Channel Design (= customer buying habits/preferences, e.g. echannels) IMPACTS THE MARKET ENTRY DECISION For Client Relationship Design (= customer relationship preferences, e.g. f2f) For Revenue Stream Design (= customer willingness to pay premium pricing, pricing models e.g. product sales, maintenance contracts sales, etc.) Key resources (e.g. IPR) Implement the business model successfully before you run out of cash, business, patience International business development 24 October

7 Segmentation: Where is your assignment sweet spot? Needs-based analysis The purpose of needs-based segmentation is the understanding of the difference between common and differentiated needs What makes needs-based analysis difficult is that it requires clustering companies/consumers by using a combined structure of qualitative and quantitative research methods International business development 24 October

8 Segmentation for value proposition design Needs refer to the motivation behind the purchase of a product/service, not to the product/service itself Market segments Market Needs and demands Trends Market issues Switching costs Revenue attractiveness Framework adapted from Alexander Osterwalder, 2010 workshop Ghent International business development 24 October

9 Segmentation for value proposition design B2B Customers are ready to pay for 3 things: Help increase revenues Help saving costs Take over risks & responsibilities International business development 24 October

10 Segmentation for consumer value proposition design Example: GfK Roper Consumer Styles (2007) Segmentation based on societal and demographical criteria Valid for 31 countries Source: International business development 24 October

11 Segmentation for consumer value proposition design Example: GfK Roper Consumer Styles (2007) Segmentation based on societal and demographical criteria Valid for 31 countries Source: International business development 24 October

12 There is a time for problems and a time for solutions Start with identifying (poorly) jobs performed (in order to improve them), customer pains and gains. If you manage to identify the ones which are painful/gainful enough (and have a value proposition to address them), people will be ready to pay for your solution Source: adapted from International business development 24 October

13 There is a time for problems and a time for solutions Source: adapted from International business development 24 October

14 There is a time for problems and a time for solutions Source: adapted from International business development 24 October

15 There is a time for problems and a time for solutions The market is the only reality Source: adapted from International business development 24 October

16 There is a time for problems and a time for solutions Source: adapted from International business development 24 October

17 Segmentation for sales channel design Segmenting for channel design starts from the customer experience Demand analysis: Assess buying behavior & the service outputs demanded by the customer How, when, where & why buy, where throughout the customer journey Segmentation for channel design is based on the demand analysis outcome Which channels & partners, besides your company can take which roles in fulfilling the needs of the selected segments Channel structure design, taking into account intensity, capacity, constraints, efficiency Identify & select suitable partners & allocate functions and roles Organize for managing channels International business development 24 October

18 Segmentation: Tool & assignment expectation Customer segment Clearly describe your target segment(s) B C D..... Which CS job/pain/gain do you solve? How do CS benefit from it? Have you quantified the problem? How/Where CS (prefer to) buy the product? (channel) (Other differentiating criteria?) Draft the segmentation for your case Teamwork By comparing different possible segments against above criteria or against criteria, defined by you By next session & be ready to explain it International business development 24 October

19 Market segment selection International business development 24 October

20 Market segment selection HIGH 2 1 Market Attractiveness of a customer (business) segment 4 3 LOW WEAK Company s Competitiveness STRONG International business development 24 October

21 Segmentation: How? (summarized) Define the approach of segmentation Company versus business unit/line - specific Global versus geographical Remember: the more adaptations to your business model (i.e. customer segments), the higher the risk of failure! Always aim to create value based on customer characteristics rather than on supplier characteristics International business development 24 October

22 Topic selection for Day 4 Value propositioning Competitive analysis Hand over your proposals in the afternoon! International business development 24 October

23 Coaching sessions Be prepared Project Plan Pestle (progress) BMC ME Selection International business development 24 October