Market Segmentation Is a Way

Market segmentation is a way to differentiate a group so that the seller of goods or services does not concentrate on the entire universe, but on a group of high potential customers that are more likely to purchase the product. The SDL theory can help us uncover ways to use segmentation by concentrating on two important areas of the marketing/consumer experience itself and the more remote and less immediately focused model. A market segment, of course, is a sub-set of the entire marketing unit that is made up of individuals or organizations with characteristics that allow them to be grouped together to provide a more appropriate marketing experience, a more individuated for of sales. Since different segments have different values, the homogeneity with in the segment defines the common goals and needs. This has been part of the more sophisticated manner of looking at specific demographics and psychographics to set pricing, packaging, and even types of service. In effect, while there may be a number of "ideal" market segments for a specific product or service, manufacturers must develop different ways of creating product different ion strategies to exploit different segments. In many ways, this was the precursor to SDL in that it focused on the specific needs and wants of a group of consumers as opposed to simply "selling" what the manufacturer made, and hoping for the best (Baker and Saren, 2010, 336).

Psychodynamics is the theory and study of the forces that form the basis of human behavior -- especially conscious motivation vs. unconscious motivation. This fits into marketing theory in that if psychological needs are met then customer satisfaction with products or services are thus met as well. In essence, the mental, or cognitive, functions that are involved in psychodynamics are dual: 1) interaction of emotional and behavioral forces that cause a behavior, especially on a subconscious level, and; 2) inner forces that affect the emotions and motivate behavior through states of mind (Horowitz, 1988).

We can easily build on our theory of SDL and service by enhancing traditional models:

If we then model the psychodynamic issue of our original map we can expand the basic structure of the new paradigm that will use psychographics to enhance the consumer experience:

MODE

Psychographic Focus

Service Benefit

UNCOVER

Basic demographics that ask questions of who, what, when, where, why, and how. What are the things that drive the customer?

By better understanding the actual service needs of the customer, the initial benefit relationship of the Service Logic Model begins. Without understanding the consumer perspective, we cannot fully understand their needs.

DEFINITION

Based on the lifestyle (demographic and psychographics indicators), what actually identifies this customer or group and their specific needs and desires?

How do these consumers define themselves and their needs? Are we able to meet those needs or mitigate a solution? What issues do we as service providers need to address to become more consumer friendly?

IDEATION

What are the basic psycho- dynamic drivers for this group and how to they fit in with the necessary wants, needs and desires of the population?

Can these drives be mitigated or met through product or service issues?

BUILDING

Taking the concepts gleaned from the above, what psycho- graphic motivations are predominant, dominant, medium, and low-dominant for the individual segment of the group? Are there sub-segments that need their needs addressed as well?

Using a pure logic model, take the delineations and develop a process so that a more unified theory of service application is readily apparent for all goods and services.

DESIGN

The customer experience coalesces here; all segments merge together in synthesis. Models move from the rote to the analytical, from the passive to the active, and from the manufacture driven to the service driven.