The “Principle of Moments” perhaps the argument for Market Segmentation!
- waynefarran
- Mar 14, 2015
- 2 min read
Principle of Moments:
The Principle of Moments states the moment of any force is equal to the “algebraic sum of the moments of the components of that force.
So why do I tie this to the argument for Market Segmentation, well when I think about it, the Principle of Moments to me is like, “cause & effect”, having momentum within particular areas of business and having an effect; hopefully positive effects!
Let’s look at Market Segmentation in the broadest of strokes.
Market Segmentation: Market segmentation is a marketing strategy that involves dividing a broad target market into subsets [Wikipedia]. Segmentation is the first step to allowing the business to better understand each portion of the market.
Why is this important?
Well as opposed to “Mass Marketing” i.e. One message, creative/s, key visuals and/or business offering; we are able to tailor our delivery of the “let’s say” “Offering” to individual market segments. In other words “Target Market” different market segments based on their needs and/or requirements.
So when you have looked at your business and have segmented your business channels; what key criteria should you identify per segment?
Let’s take the following as a good starting point.
Understanding: Do you fully understand this segment, or do you need more information.
Segment Size: Is this segment significantly large enough to justify the resources and investment required to get a desirable ROI.
Segment Stability: is the segment both stable and mature enough to ensure long term returns.
Accessibility: Is the segments reachable through your current business structure via people, communication and/or distribution.
Understanding the above should help deliver effective advertising, better branding and a highly targeted offering; all delivering a positive “cause & effect”, hopefully resulting is a desirable outcome!
Wayne~
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