1. Project Activity #1: Who are my customers?
You and your team members are the founders of a new digital marketing firm that helps organizations in the private, social, and public sectors integrate augmented reality into their marketing strategies. As founders of the firm, it’s your responsibility to develop new clients. Tonight, begin developing a segmentation & targeting strategy for your new digital agency. By the project presentation, you’ll want to identify the segments in the market, which you plan to target, and why. In the case of this B2B sale, understanding your target segment will also require understanding your prospective clients’ target segments, as well.
Consider the potential market for your new firm’s AR application. Brainstorm potential market segments, using the content from today’s lecture & the “Segmentation & Targeting” reading.
Which segmentation variables are most relevant to your segmentation strategy? How will you define distinct market segments? (Exhibit A)
Evaluate the “Who, What, Why” to refine prospective segments & what motivates them. When doing this, consider that your new firm is selling B2B, so your team will need to evaluate your prospective client’s customers and how your AR solution will help your clients better serve their customers. Also, consider the buying approach for the prospective segments. (Exhibit B)
Discuss which of the segment(s) your new firm will target and why. (Exhibit C).
Finally, discuss which marketing intelligence / market research sources you’ll use to test & support your segmentation.

2. EXHIBIT A
Variable
Description
Geographic
Country, City, Region, Urban vs Rural, Climate
Demographic
Age, Income, Gender, Generation, Marital Status, Family Size, Occupation
Psychographic
Lifestyle, Personality, Activities, Interests, Opinions,
Behavioral
Usage Rate, Loyalty, Product Knowledge, Involvement, Decision, Purchase Occasion
Benefits Sought
Convenience, Value, Safety, Status
Variable
Description
Geographic
Country, City, Region, Urban vs Rural, Climate
Firmographic
Industry, Firm Size, Global/Regional, Ownership Structure
Buying Approach
Centralized / Decentralized, Purchase policies, Involvement of Decision Makers
Behavioral
Volume, Loyalty, Attitude toward risk, Purchase frequency, Urgency
Benefits Sought
Price, Product quality, Customer service, Relationship

3. WHY WHAT WHO EXHIBIT B Why do customers make the decisions they do?
Needs, preferences, decision-processes
WHAT
What have the customers done?
Usage, loyalty, profitability
WHO
Who are the customers?
Demographics, media habits, lifestyle

4. Target Market Selection
EXHIBIT C
SEGMENT CHARACTERISTICS
Segment Size
Segment Growth Rate
Segment Profitability
COMPETITION
Competitor’s Strengths
Competitor’s Resources
Competitor’s Intensity
Target
Market
Selection
COMPANY FIT
Objectives
Competencies
Resources

5. At the end of class this evening, please me with your team’s progress on this activity. This does not have to be formal, so feel free to send in any format – a link to a google doc, text in an , a few slides, etc.
If you have questions, please note them in the text of the . Thanks!

6. Project Activity #2: What do they value?
You and your team members are the founders of a new digital marketing firm that helps organizations in the private, social, and public sectors integrate augmented reality into their marketing strategies. As founders of the firm, it’s your responsibility to develop new clients. Tonight, begin to identify what your prospective customers value & how they make decisions. To that well, it will help to understand what your customers’ customers value first.
Define the OBC for your target segment. Who will help make decisions?
Outline a few notes on your target customers’ customers. Who are the customers? How does your client/customer provide value to them?
How can your AR solution help your prospective client provide more, better, faster value to their customers?
Use the 30 elements outlined in the Elements of Value to identify elements that most apply to your target segment.
NOTE: All work completed in class should be substantiated & tested through research before presenting your final project.