Comments on: Market Segments, Misunderstood

By: Debbie

Debbie — Sat, 07 Jun 2008 04:30:24 +0000

I am working on a Market Segmentation research project as an independent study for a professor. This professor specializes in Consumer Marketing and is a huge fan of Market Segmentation – but I feel he is a bit dated on today’s best practices.
I have read so many articles,power points, etc; over the past weeks and I am absolutely lost at this point. I have put together about 6 pages of “textbook” material but I am finding so many contraditions to the more simplistic old school philosophies. I get the impression that my professor is more of a traditionalist yet appreciates my willingness to work “outside the box.” Does anyone have some excellent resources they recommend on this this subject that can give me more solid ground to stand on. My paper is due Monday, June 9th. Your input would be greatly appreciated.

By: Linda P. Morton

Linda P. Morton — Mon, 25 Feb 2008 20:02:40 +0000

Andrea,
You make a good point. I frequently have people ask me what the difference is between market segmentation and stereotyping. One of those differences is that stereotyping looks at only one group that a person belongs to while market segmentation, done right, looks at all groups that a person belongs to and the characteristics most shared across all those groups.
To just consider Baby Boomer characteristics is stereotyping, but considering generation, life stage, gender, social class, lifestyle and all other relevant groups for a target market provides detail to better understand the target market, rather than eliminating details by concentrating only on characteristics appropriate for one group.

By: Stephen Denny

Stephen Denny — Fri, 08 Feb 2008 18:34:16 +0000

There’s a trap in trying to super-segment your market, and you’ve just described it very well. We often try to steer our product into a niche when we would do far better promoting benefits apart from narrow preconceptions.
This product isn’t “great for stockbrokers”, it’s great for people who are on the phone a lot, which may be stay-at-home-moms.
Our preconceptions can really get in the way.

By: Glenn Gow

Glenn Gow — Thu, 07 Feb 2008 18:08:40 +0000

Andrea, I understand your point, but I have a different perspective. I think you’re really talking about micro-segments and my take on this is that very few companies can afford to do micro-segmenting.
If I’m sitting on a big pile of marketing dollars, I contend that a big part of my job is to pick market segments and then invest dollars to build products, channels and messages to serve those segments.
Yes, there are a few products that can be highly customized (e.g. online financial services solutions), but only a very small number. Segmenting channels to serve microsegments is equally challenging. Even messaging into microsegments can be cost prohibitive.
We have to determine the level of granularity that a marketing leader can afford, and more often than not, it will be a broader market segment, not the microsegments you – as a consumer – would love to see.
In other words, I’d love to do this, and see our clients do more of this. However, I couldn’t advise them to move in this direction as in the vast majority of the cases, their ROI will be negative.

By: Neil Anuskiewicz

Neil Anuskiewicz — Thu, 07 Feb 2008 15:27:35 +0000

The whole generational thing irritates me. I find that I, as a so-called generation X’er, have much in common with people from a number of different people and generations. I can have a conversation with a Conservative Catholic boomer or a Hippie Boomer and can have significant things in common with each. And what is a hippie? Someone who is a hedonist but gives only lip service to causes? Or is it someone who lives what they say? I have always been a bit confused on that point.
People are people. It is unclear to me that it is useful to divide people by generation because there is so much variation within a generation. Though I guess it is, unfortunately, useful in marketing.
I find that when I talk to people I can click with a person of any generation or not. We can have quite a bit in common, including purchasing interests, or not.
Sure, Generation X, me, might be segmented in certain ways but I don’t self identify as a member of Generation X. Curt Cobain was never my spokesman.
I don’t know if boomers self-identify as bommers. I hope not. I do not know when or who started this whole generational divide idea but I hope we can get beyond it. To me it is silly, at best.
Segmenting as a marketing tool is not going any where but let’s recognize that the segment does not define the person. And, as Andrea, points out, “segments” are often misunderstood.
I have more in common with certain people of any generation based on interests. It seems to be more important than generation or even race. I have more to talk about with a 60 year old who likes to hike and/or talk about ideas than someone who seems just like me on the surface, etc.

By: Lewis Green

Lewis Green — Thu, 07 Feb 2008 13:56:29 +0000

Andrea,
Thank you. It is rediculous to believe that we can create a stereotype representative of a group of people.
I am a Boomer, as are my wife and my many cousins. We may have evolved from the same gene pool, grown up with the same TV shows, listened to similar music and been exposed to the politics of the day. Nevertheless, our shopping wants and needs are as disimilar as they would be if we were unrelated and came from different generations.