Seth's Blog: Needs don't always lead to demand

Seth's Blog: Needs don't always lead to demand

Great post from Seth Godin today about understanding the difference between what consumers need and what they want and how businesses and organizations can choose to respond.  Good, quick read.

The Attraction Economy

You've heard it before, but you may have forgotten it:  Now, more than ever, customer loyalty matters.  It is far more expensive to acquire new customers than to keep & grow existing ones.  When budgets are tight and consumers are spending less, this is even more important for your organization to keep in mind.   And when you do spend on customer acquisition & engagement, spend on those tactics that attract customers who will stay with you for the long-run.  This means you can't keep offering 25% off to meet your revenue goals because you will end up with more price-sensitive consumers who won't be willing to pay full price in the future.  
The key is to "draw" consumers in with your brand in such a way that resonates with them on an individual basis.  Need help defining your brand or understanding how to draw in customers with your brand?  Email me for help.

Why your marketing strategy has to start with the customer

Often businesses and organizations skip a critical step in formation of their marketing strategy - target audience segmentation, or essentially defining who, along the spectrum of potential customers, to attempt to serve.  Segmentation shapes every piece of the marketing strategy since the customer, not the product or service, determine the game plan and rules by which the game is played.

So why do smart people (like you perhaps) skip it?  Common response:

In reality, many people just don't understand the power of segmentation or how to do it well. 

As I mentioned, segmentation drives key decisions related to your marketing strategy.  To do it well does take time, but it is absolutely, one-hundred percent worth it.   And even if your product is designed for the mass market, you still need segmentation to define who the most likely early adopters are and how to engage them.

For example, a chocolate brand segmenting the market based on use habits may choose to target those who primarily use chocolate for cooking & baking, while another might target those using it for daily snacking.  The choice has important implications for what kind of chocolates to make & in what shapes, how to package & price their chocolates, and where to sell it. 

Segmentation involves deciding on what basis to divide the variety of consumers that might benefit from your product or service.

Thought-starters:  How does your organization segment the market?  How should they segment it?  Are you using the right marketing tools to reach the segment you've chosen?

Need help answering these questions?  Email me.