Kellogg on Branding by Tybout Alice M. & Calkins Tim & Kotler Philip

Author:Tybout, Alice M. & Calkins, Tim & Kotler, Philip
Language: eng
Format: epub
Publisher: Wiley
Published: 2011-01-05T05:00:00+00:00

We discuss each step in detail below.

Step 1: Develop and Profile Subsegments

The first step in the subsegmentation process is to partition a company’s consumers or customers into subsegments and then profile those groups. The subsegmentation will be useful if the company can develop contacts targeted at the subsegments that are more effective than using the same contact for everyone. For example, Lexus might want to subsegment based on previous ownership of a Lexus automobile, and this group would profile as older. Advertising and other contacts targeted specifically to this group would likely be more successful than a generic appeal to all target consumers. But how can we think about these possible subsegmentation variables, like previous ownership, more systematically? We provide in the following a useful classification of subsegmentation possibilities.

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