T4 – Target the best segments

I - CONSUMER MARKET
2
 Kinds of Consumer Market

TAM: Total addressable market demonstrates the entire revenue

1 opportunity that exists within a market for a product or service.

SAM: In the absence of monopoly control and/or unlimited

2 financial resources, capturing 100% of a TAM is almost impossible
for a business.

Serviceable available market carves the TAM up into sub-markets

that cater towards different types of users. This can be defined by
(but not limited to) differences in quality, price or functionality.

SAM SOM
Serviceable obtainable market shows how much of the SAM can be
3 realistically captured by a business in the short/mid-term.

A combination of the competitive forces of the market and the

company's own resources (financial and human), determine how
much market share can be reached

Frameworks such as Porter's Five Forces can help to determine the

competitive dynamics of a market and provide guidance on the
SOM opportunity.

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 Four segment characteristics

Geographic Demographic Psychographic Behavioral

Brand
Region Age Lifestyle
Loyalty

Benefits
Country Gender Personality
Sought

Population Nationality Values User Status

Climate Ethnicity Interest Usage Rates

Occupation Occasion

Readiness to
Income
buy

Family Size

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 1 Geographic Segmentation

50% North 15%

America
Asia
5%

5 Vietnam

25% Africa
South
America

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 2 Demographic Segmentation

Education Age
Segmentation group 6 Segmentation group 1

Race Gender
Segmentation group 5 Segmentation group 2

Professional Income
Segmentation group 4 Segmentation group 3

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 3 Psychographic Segmentation

Opinions Behaviors

Attitudes Values

Activities Interests

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 4 Behavioral Segmentation

Loyal customers segment

Occasional buying segment

Black Friday Hunter Segment

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 What do we need for the best segment?

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 Define the best fit

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 Customer Persona

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II THE BUSINESS MARKET
12
 B2B Segmentation Approaches

Based Based
on Behavior on Tier

Based Based
on Firmographics on Needs

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 1 Customer Segmentation Based on Firmographics

Company Size
Company Size
Territory Industry Company Name Headquarters Business Type (Annual
(Number of Employees)
Revenue)
Pharmaceuticals ABC Texas Global Enterprise $15 million 7500
Saigon

North

Central

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 Customer Segmentation Based on Firmographics

Firm Type Firm Size (Employees)

Small Business
Other 5001+
<50
FinServ 501-200
Healthcare 501-1000
Global Enterpise

1001,5000
Manufacturing
201-501 Mid-Size Business

0 50 100

Company will focus They will offer its product We focus on mid-size
more on the firms primarily to small companies
engaged in business and mid-sized
healthcare industry business companies.

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 2 Customer Segmentation Based on Behavior

Behavior Segment
Territory Company
( Employee size > 1200)
Industry Served Technology Used Frequency Of Usage Buying Segment

Company A Automobile Innovation Heavy User Smart buyer

South Company B

Company C

East Company D

Company E

West Company F

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 3 Customer Segmentation Based on Needs

Need or
Territory Industry Company Name
Requirement

FinServ ABC New buy

Southern
Petrol Saigon Yearly maintenance Price Quality & Brand
Focused Focused

XX XX XX XX

Company 1 Company 4
Eastern

XX XX XX XX

Company 3 Company 2
Service Partnership
Western Focused Focused

Number of Employees Annual Revenue

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 4 Tier Based Customer Segmentation

High
Annual Revenue TIERS Annual Revenue

TIER 2 TIER 1
More Then

Value to Customer
>5000
$10 Million TIER 1
(HIGH PRIORITY)

$5 - 10 Million TIER 2 >2000 and <5000

(MEDIUM PRIORITY)

TIER 3 TIER 2

Less Than $5 Million TIER 3 <2000

(LOW PRIORITY)

Low Value to Business High

Company can do tier segmentation Company can primarily focus on tier 1 Text Here
of its customers based on annual segment as it will provide high value to
revenue and employee size. both customers and the business.

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 Customer Segmentation Layout
15 Million
Target Market 100%

Unaware Aware
1.75 Million 3.25 Million

Not Tried Tried

1.35 Million 1.9 Million

Negative Favorable Not Yet

Neutral Rejecter Repeated
Opinion Opinion Repeated
0.35 Million 0.65 Million 0.35 Million 0.15 Million 0.75 Million 1 Million

Loyal To Loyal To
Switcher
Other Brand Brand
0.10 Million 0.15 Million 0.75 Million

Light User Regular User Heavy User

Market Size 0.05 Million 0.15 Million 0.55 Million

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 B2B Customer Persona

Background Behaviors
› Duong is a tech-savvy guy who is looking for the › Early technology adopter
solution to streamline his business and expand the › Test new innovations
service offering market.

Goals Expectations
› Increase Business Revenues › Quick ROI
Mr. Duong › Lessen the labour hours › Happy employees

Position: CEO
ABC Technologies
Company Size – 3500 Motivators Challenges
employees › Maintaining a competitive edge through new › Financial resources for adopting innovative solutions
technology solutions
Industry –pharmaceuticals

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 Quotes
A winner is a
dreamer who
never gives up

-Nelson Mandela

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