Segmentation
Identify smaller, homogeneous groups of customers who have common needs and similar responses to marketing.
Targeting
Pick amongst those segments the ones to target, for value
"Big" vs. "Little" Targeting
- "Big Targeting" = Who are the customers for our company?
- "Little Targeting" = Who are the customers for our brand or product?
Customer Lifetime Value
Use LTV to find out which customers to invest more in
User types for segmenting & targeting
Identify user types for segmenting and targeting (i.e. non users, tried & rejected, never tried)
Brand Development Index (BDI) and Category Development Index (CDI)
Always do both a BDI and CDI calculation in order to compare the two. The BDI answers how well our brand performs within a segment instead of in the population overall. The CDI answers how well our product category does within a specific group of customers (segment).
Sample Indixes Excercise:
Readings
Core brand message: How to build a unique brand
Three Questions You Need to Ask About Your Brand
