If we view markets the same way as competitors, we end up targeting the same customers with similar offerings. To be perceived as different, we need a unique way of segmenting markets and thinking about value creation.
One of the hardest decisions in marketing strategy is to choose the most attractive customers to serve. When we segment a market, the goal is to understand how and why customers are different so that we can identify the best-fit customers for our business. Depending on which variables we use to explain differences between customers, we can often end up seeing customer segments the same way as competitors.
For example, stage in family cycle is a common variable used in financial services to decide what products and services are offered to customers. As a result, many institutions end up targeting the same segments with similar offerings, making it challenging to promote points of difference or offer innovative solutions.
The objective should be to have a unique way of segmenting markets compared to competitors – this is the basis for innovation and competitive advantage.
Better still, why not use a new lens for thinking about markets and value creation. One way is to start viewing markets as networks – interconnected networks where you can cocreate new value propositions and business models together with customers, suppliers and other network partners. Identifying the right stakeholders to engage within and across different networks is key to creating innovative solutions that are mutually beneficial.
#marketing #segmentation #networks #cocreation