Written by Joe Whitaker
Segmentation Marketing is one of the most common marketing strategies businesses use to grow their firms, by adding logical new products or services to one’s repertoire, thus attracting new customers and/or providing existing customers with a broader variety of purchase choices.
It’s simply a fancy term for “growing by doing more of what you already know!”
For instance, if you market a successful product line of women’s skincare products, a logical next step could be to introduce a men’s line of similar products aimed at men’s sensibilities. You already know the raw material suppliers, the distribution channels, the eventual brick-and-mortar, online outlets, etc.
Three classic examples:
- Nike. Phil Knight placed his company on the world map by producing a superior line of recreational footwear, beginning with both walking and running shoes. Now you can also buy Nike shoes specifically designed for jogging, hiking, climbing, running short or long distances, plus playing sports such as basketball, soccer, and tennis.
- Mattel. When I joined the Los Angeles-based doll and toy company, “Barbie” had been on the market for five years, and was hugely successful, but the line still existed as simply a doll plus fashion wear. We quickly built a “World of Barbie”, adding play sets, houses, vehicles, pets, “career Barbies”, plus various friends and family member dolls. Now, over sixty years later, “Barbie” is still the world’s best-selling doll.
- Spectrum. Began as a cable TV provider, now also supplies internet and landline phone service to homes and offices.
Each of these companies grew enormously by taking one logical step at a time.
You can, too!