Join Doug Ladd for an in-depth discussion in this video What you should know before watching this course, part of Marketing Foundations: Customer Segmentation.
- We are all customers and consumers. In watching this video, you are consuming it. And you have some things in common with other people who complete online training and education programs. One of the jobs marketers do is gather data on customers and target markets so they can better refine their positioning and messaging. There's a common concept in marketing called the 80/20 Rule. Most businesses find that about 80% of the revenues come from approximately 20% of the people who buy from them.
I recently did a project where we found that 29% of a firm's customers brought in 79% of sales in one category. Knowing this information, the company could then focus on how to dive deeper into those 29% of their customers who obviously trust them. And then also look for other ways to get the other 71% of their low volume buyers to consume more. In this course, I'll make numerous references to data and resources available on people and markets within the United States.
However, the principles for doing customer segmentation are the same around the globe. Most governments provide very solid demographic information, and there are market research firms that serve just about every industry in each developed market. To get the most out of this course, it's important to understand the basics of marketing, since they're the cornerstones for building and executing a solid plan to segment your customers. Understanding the four P's of marketing, product, price, place, promotion, are also important to get the most out of the course.
If you haven't done so already, I suggest you watch Marketing Fundamentals with Drew Boyd, here on Lynda.com. And appreciating the basics of how to learn more about your customers will help, too. So watch Market Research Fundamentals by Cheryl Ladd. The investment will be well worth your time.
- Segmenting by location
- Segmenting by demographics
- Segmenting by usage or other behavior
- Why segmenting is important
- Creating and using customer personas