The Three Most Important Things in Marketing

When is a hammer not just a hammer?

My MBA prof. at the Telfer School of Business told us that the three most important things in marketing were: Segmentation, Segmentation and…Segmentation. And after 25 years of consulting, I have to say he was absolutely correct on all three.  

Take the image above for example. It looks like a collection of hammers but, in fact, each hammer is different and has a unique purpose: hammers for masons, hammers for welders, hammers for carpenters, joiners, framers, prospectors, and so on. If you were in the ‘hammer’ business, I would challenge you to determine which of these segments you would be best suited to serve. The way a mason buys is different from that of a prospector – and what you might offer each of them, and how you approach and deliver to them, would also be different. 

It starts with a general idea of what it is you are really good at and where you can establish your credibility. It might be your ability to manufacture really tiny parts in titanium or your knowledge of how to ship large animals, or how to manipulate large geo data files to gain new understanding. 

Next, you need to understand what group of people or companies are interested in this sort of capability. Ideally, it’s a group that is large enough to warrant serving but cohesive enough that what you develop for one would be of interest to all.  

Next, you need to understand what group of people or companies are interested in this sort of capability. Ideally, it’s a group that is large enough to warrant serving but cohesive enough that what you develop for one would be of interest to all.  

Beware of FOMO…and the tendency to cast as wide a net as possible (some of the unenlightened describe their ideal client as anyone with a pulse and money…). The more tightly you define your ideal client, the more effective your go to market efforts can be. 

I have listed below some example variables to consider in effective segmentation. 

I have listed below some example variables to consider in effective segmentation. 

• Industry defined (SIC/NAICS etc)  
• Type of buyerSize of buyer
• Way in which they buy
• Geography
• Way in which they pay
• What their point of reference is
• How you deliver value 

Sample Offer Components

• Product features
• Cap ex vs Op ex
• Up front vs ongoing value
• Cost to deliver
• Cost to sell
• Cost to support
• Post sale support
• Geography

 Outcomes

The above are simply examples as there are an infinite number of ways to segment your market. I have worked with hundreds of clients and every one of them has segmented their market in a way that reflects their unique values which is typically tighter and more differentiated than their competition. This results in narrower sales funnels, shorter sales cycles, lower marketing costs, less price objection, and better long-term clients. 

So yes, the three most important things in marketing are indeed Segmentation, Segmentation, and Segmentation! 

See you next time, 

Andrew 

PS – If you’d like a ½ day inhouse workshop on how to segment your market, let me know. You’ll be surprised at how effective it will be.