Examples: We offer brief write-ups for each method describing a situation where the idea is used or implied. Use these supporting examples in order to expand your range of ideas. These examples are neither mutually exclusive nor collectively exhaustive.

We offer you both a short version and a long version of some of these segmentation concepts. We have enough examples of some of these concepts to expand the concept into more specific concepts with their examples. Use the short version to complete your innovation in less time. Use the long version for more in-depth brainstorming.

Intermediary Customers Purchasing from the Producer of the Product. Each of these costs represent a step an intermediary or channel customer must take in connection with the product:

Obtain Steps: The Obtain steps include all activities preceding the selling of the product. These activities include the costs of identifying potential suppliers and stocking the product.

1. Physical: Segment customers by physical needs. These segmentations identify the physical needs of individual customers and address the physical situation of the location where the product is purchased or used.

  1. Physical state of the individual customer: Segments of the general customer population may have different characteristics of sizes and of their ability or disability. Examples >>
  2. Physical state of the location where the product is purchased or used.
    1. Physical conditions where product is used. Examples >>
    2. Dimensions available at locations where the segment stores or displays product. Examples>>

2. Emotional: Segment customers according to the personal emotional needs of the segment.

  1. Needs for comfort and status
    1. Comfort through the five senses. Examples>>
    2. Status in the community Examples>>
    3. Status through the recognition of customer’s individual requirements for product. Examples>>
  2. Needs to avoid sources of anxiety
    1. Risks in relationship: The customer segment needs reassurance it can trust. Short Examples>> Long Examples>>
    2. Limitations set by time: Segment customers according to the causes of the limitations set by time. Short Examples>> Long Examples>>
    3. Economic limitations: Segment customers according to the limitations set by their economic interests and concerns. Short Examples>> Long Examples>>

3. Intellectual: Segment customers on the basis of their current knowledge and understanding of the company and its products

  1. Knowledge of company and company product
    1. Familiarity with company and brand, crossing all products Short Examples>> Long Examples>>
    2. Familiarity with specific product Examples>>
    3. Knowledge of product technology Examples >>

Basic Strategy Guide Users Go To: Step 12

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