1. Market Segments & Value Propositions February 10, 2015

2. Agenda 4:30pm – 4:50pm (Discussion) Segmentation & Targeting Identifying the right customers Value Proposition Development: Creating value for those customers 4:50pm – 5:30pm (Activity) Value Proposition Building

3. Segmentation Group customers based on similar needs Profile each segment Targeting Assess attractiveness of each segment Select segments to target Positioning Define value proposition for target segments Develop an action plan What is the market segmentation process?

4. Why is it so important? 1.It allows the firm to develop products/services that meet customer needs. 2.It identifies new opportunities to address unmet needs. 3.It saves money, time, and energy.

5. Segmentation benefits both buyer & seller. How did the 2012 Obama campaign segment the market? Geographic Demographic Psychographic Behavioral Benefits Sought

7. Segmentation is part science, part art. Source: Compass LabsCompass Labs

8. WOMEN, AGES 40 - 49 Contribute the Most Money Love George Clooney & Sarah Jessica Parker Read Vogue Magazine

9. Segmentation variables in B2C markets VariableDescription GeographicCountry, City, Region, Urban vs Rural, Climate DemographicAge, Income, Gender, Generation, Marital Status, Family Size, Occupation PsychographicLifestyle, Personality, Activities, Interests, Opinions, BehavioralUsage Rate, Loyalty, Product Knowledge, Involvement, Decision, Purchase Occasion Benefits SoughtConvenience, Value, Safety, Status

10. Segmentation variables in B2B markets VariableDescription GeographicCountry, City, Region, Urban vs Rural, Climate FirmographicIndustry, Firm Size, Global/Regional, Ownership Structure Buying Approach Centralized / Decentralized, Purchase policies, Involvement of Decision Makers BehavioralVolume, Loyalty, Attitude toward risk, Purchase frequency, Urgency Benefits SoughtPrice, Product quality, Customer service, Relationship

11. How do this work?

12. Value Proposition Development

13. A value proposition is not a list of features Instead: A value proposition describes the benefits that customers can expect from your products and services. Extreme Fitness WorkoutA Luxury HandbagAn iPhone 6

14. Begin by understanding your customer. Jobs Pains Gains

15. And match them with your business.