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Focus on the job that customers try to get done than the customer himself30th September, 201411Segmentation means to divide the marketplace into parts, or segments, which are definable, accessible, actionable, profitable and have a growth potential.

SEGMENTATION22Methods for segmenting consumer marketsGeographic SegmentationDemographic SegmentationBehavioral SegmentationPsychographic Segmentation

33Criteria for Effective Segmentation Size, purchasing power, profiles of segments can be measured. Segments must be effectivelyreached and served. Segments must be large or profitable enough to serve. MeasurableAccessibleSubstantialDifferentialActionable Segments must respond differently to different marketing mix elements & actions. Must be able to attract and serve the segments.4Effective SegmentationThis CTR relates to the material on pp. 215.Requirements for Effective SegmentationMeasurability . This refers to the degree to which the size and purchasing power of the segments can be measured. The accuracy and availability of measures of market potential are important.Accessibility. This refers to the degree to which a market segment can be reached and served. Identifying a segment is useless if the marketer has limited access to the customer.Substantiality. This refers to the degree to which the segments are large or profitable enough to service.Actionability. This is the degree to which an effective marketing program can be designed for attracting and serving segments. Company resource limitations figure prominently in actionability issues.

The article mainly relates to segmenting the markets and defines The job that a consumer wants to get done from the product as an effective criteria for segmentation.5Milk Shake Example61ST RESEARCH

Researcher segmented the market by product.Further segmented by customers most likely to buy.They changed shakes into thicker, more chocolaty, cheaper to satisfy them more.

NO IMPACT ON SALES

RESULTS7NEW RESEARCH

Researcher noticed each customer when each of the shakes get sold.Other products purchased with it.They are alone or group.Taking milk shake in the premises or drove off with it.

RESULTS40% sales in early morning.No other product purchased.They are alone.Consuming in their cars.

8What job is to done ?

Boring commute Interesting commute.Not hungry Later will be hungry.Wearing work clothesKeep their clothes clean.One hand is free Busy handChanges

9Making thicker Milkshake.Adding the fruit.Introducing dispensing machine with swipe card.

Now the Question is Is this Segment Sizeable/Substantial??10The point is to grow the category.What do we mean by this?

11Traditional Positioning Exercise12Objective:Position new unique products in the vacant spot or Spots where only a few marketers have their presence.

Problems:Customers dont value the differentiation.Competitors easily copy.

BreadthQualityPriceStyle13Company begins to view market structure by jobStarter home

Equip their long-term residence with furniture

Broad selectionEnduring style and quality

They will wait for two to three months

Two fundamental jobs arise in customerMove to Apartment

Equip their residence with furniture

Broad selection

They needed the furniture nowE.g.: IKEA International A/SFiguring out the Jobs to be done Segmentation in their markets?14Where To Look ?1st StepCurrent customer baseItem 22nd StepPeople who could be yourcustomer

3rd StepGrowth opportunities is exploring Disruption15The customer rarely buys what the business thinks it sells him. - Peter DruckerHow To Look ?1.INTERVIEWS AND SURVEYSObjective: Understand the situation and not the customer.

Causes:The correlation between customer with particular characteristics.The propensity to purchase particular product.The situation that caused to purchase not just functional dimension but also emotional factors.

Products Dont Engender Emotions, But Situation Do162.OBSERVATIONE.g.: Sony Corp legendary cofounder Akio Morita had this situation.

3.EMPATHIC OBSERVATION OF COMPENSATING BEHAVIORS

E.g.: An inventor approached the Big Idea Group of Manchester.

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COEVOLUTION

E.g.: General Motors Corp. got into the market with OnStar in their vehicle.

I want peace of mind that if something unfortunate happens, my loved ones and I will be taken care of.

18CONCLUSIONProducts for which improved performance does not result in improved pricing /market share, turn out to be immature, with lots of scope for differentiation and premium pricing provided the job and its hiring criteria are understood.

Customers dont want a quarter-inch drill. They want a quarter-inch hole. 19REFERENCEJournal: MIT Sloan Management Review, April 01, 2007 Finding the Right Job For Your Product Authors:Clayton M. Christensen.Scott D. Anthony.Gerald Berstell.Denise Nitterhouse.

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