6,203 research outputs found
To boardrooms and sustainability: the changing nature of segmentation
Market segmentation is the process by which customers in markets with some heterogeneity
are grouped into smaller homogeneous segments of more ‘similar’ customers. A market
segment is a group of individuals, groups or organisations sharing similar characteristics and
buying behaviour that cause them to have relatively similar needs and purchasing behaviour.
Segmentation is not a new concept: for six decades marketers have, in various guises, sought to
break-down a market into sub-groups of users, each sharing common needs, buying behavior
and marketing requirements. However, this approach to target market strategy development
has been rejuvenated in the past few years. Various reasons account for this upsurge in the
usage of segmentation, examination of which forms the focus of this white paper.
Ready access to data enables faster creation of a segmentation and the testing of propositions to
take to market. ‘Big data’ has made the re-thinking of target market segments and value
propositions inevitable, desirable, faster and more flexible. The resulting information has
presented companies with more topical and consumer-generated insights than ever before.
However, many marketers, analytics directors and leadership teams feel over-whelmed by the
sheer quantity and immediacy of such data.
Analytical prowess in consultants and inside client organisations has benefited from a stepchange,
using new heuristics and faster computing power, more topical data and stronger
market insights. The approach to segmentation today is much smarter and has stretched well
away from the days of limited data explored only with cluster analysis. The coverage and wealth
of the solutions are unimaginable when compared to the practices of a few years ago. Then,
typically between only six to ten segments were forced into segmentation solutions, so that an
organisation could cater for these macro segments operationally as well as understand them
intellectually. Now there is the advent of what is commonly recognised as micro segmentation,
where the complexity of business operations and customer management requires highly
granular thinking. In support of this development, traditional agency/consultancy roles have
transitioned into in-house business teams led by data, campaign and business change planners.
The challenge has shifted from developing a granular segmentation solution that describes all
customers and prospects, into one of enabling an organisation to react to the granularity of the
solution, deploying its resources to permit controlled and consistent one-to-one interaction
within segments. So whilst the cost of delivering and maintaining the solution has reduced with
technology advances, a new set of systems, costs and skills in channel and execution
management is required to deliver on this promise. These new capabilities range from rich
feature creative and content management solutions, tailored copy design and deployment tools,
through to instant messaging middleware solutions that initiate multi-streams of activity in a
variety of analytical engines and operational systems.
Companies have recruited analytics and insight teams, often headed by senior personnel, such as
an Insight Manager or Analytics Director. Indeed, the situations-vacant adverts for such
personnel out-weigh posts for brand and marketing managers. Far more companies possess the
in-house expertise necessary to help with segmentation analysis. Some organisations are also
seeking to monetise one of the most regularly under-used latent business assets… data.
Developing the capability and culture to bring data together from all corners of a business, the open market, commercial sources and business partners, is a step-change, often requiring a
Chief Data Officer. This emerging role has also driven the professionalism of data exploration,
using more varied and sophisticated statistical techniques.
CEOs, CFOs and COOs increasingly are the sponsor of segmentation projects as well as the users
of the resulting outputs, rather than CMOs. CEOs because recession has forced re-engineering of
value propositions and the need to look after core customers; CFOs because segmentation leads
to better and more prudent allocation of resources – especially NPD and marketing – around the
most important sub-sets of a market; COOs because they need to better look after key
customers and improve their satisfaction in service delivery. More and more it is recognised that
with a new segmentation comes organisational realignment and change, so most business
functions now have an interest in a segmentation project, not only the marketers.
Largely as a result of the digital era and the growth of analytics, directors and company
leadership teams are becoming used to receiving more extensive market intelligence and
quickly updated customer insight, so leading to faster responses to market changes, customer
issues, competitor moves and their own performance. This refreshing of insight and a leadership
team’s reaction to this intelligence often result in there being more frequent modification of a
target market strategy and segmentation decisions.
So many projects set up to consider multi-channel strategy and offerings; digital marketing;
customer relationship management; brand strategies; new product and service development;
the re-thinking of value propositions, and so forth, now routinely commence with a
segmentation piece in order to frame the ongoing work. Most organisations have deployed
CRM systems and harnessed associated customer data. CRM first requires clarity in segment
priorities. The insights from a CRM system help inform the segmentation agenda and steer how
they engage with their important customers or prospects. The growth of CRM and its ensuing
data have assisted the ongoing deployment of segmentation.
One of the biggest changes for segmentation is the extent to which it is now deployed by
practitioners in the public and not-for-profit sectors, who are harnessing what is termed social
marketing, in order to develop and to execute more shrewdly their targeting, campaigns and
messaging. For Marketing per se, the interest in the marketing toolkit from non-profit
organisations, has been big news in recent years. At the very heart of the concept of social
marketing is the market segmentation process.
The extreme rise in the threat to security from global unrest, terrorism and crime has focused
the minds of governments, security chiefs and their advisors. As a result, significant resources,
intellectual capability, computing and data management have been brought to bear on the
problem. The core of this work is the importance of identifying and profiling threats and so
mitigating risk. In practice, much of this security and surveillance work harnesses the tools
developed for market segmentation and the profiling of different consumer behaviours.
This white paper presents the findings from interviews with leading exponents of segmentation
and also the insights from a recent study of marketing practitioners relating to their current
imperatives and foci. More extensive views of some of these ‘leading lights’ have been sought
and are included here in order to showcase the latest developments and to help explain both
the ongoing surge of segmentation and the issues under-pinning its practice. The principal
trends and developments are thereby presented and discussed in this paper
A Crash Risk Assessment Model for Road Curves
A comprehensive model to assess crash risks and reduce driver’s exposure to risks on road curves is still unavailable. We aim to create a model that can assist a driver to negotiate road curves safely. The overall model uses situation awareness, ubiquitous data mining and driver behaviour modelling concepts to assess crash risks on road curves. However, only the risk assessment model, which is part of the overall model, is presented in the paper. Crash risks are assessed using the predictions and a risk assessment scale that is created based on driver behaviours on road curves. This paper identifies the contributing factors from which we assess crash risk level. Five risk levels are defined and the contributing factors for each crash risk level are used to determine risk. The contributing factors are identified from a set of insurance crash records using link analysis. The factors will be compared with the actual factors of the driving context in order to determine the risk level
Improving Usability of Social and Behavioral Sciences’ Evidence: A Call to Action for a National Infrastructure Project for Mining Our Knowledge
Over the last century, the social and behavioral sciences have accumulated a vast storehouse of knowledge with the potential to transform society and all its constituents. Unfortunately, this knowledge has accumulated in a form (e.g., journal papers) and scale that makes it extremely difficult to search, categorize, analyze, and integrate across studies. In this commentary based on a National Science Foundation-funded workshop, we describe the social and behavioral sciences’ knowledge-management problem. We discuss the knowledge-scale problem and how we lack a common language, a common format to represent knowledge, a means to analyze and summarize in an automated way, and approaches to visualize knowledge at a large scale. We then describe that we need a collaborative research program between information systems, information science, and computer science (IICS) researchers and social and behavioral science (SBS) researchers to develop information system artifacts to address the problem that many scientific disciplines share but that the social and behavioral sciences have uniquely not addressed
Eliciting Expertise
Since the last edition of this book there have been rapid developments in the use and exploitation of formally elicited knowledge. Previously, (Shadbolt and Burton, 1995) the emphasis was on eliciting knowledge for the purpose of building expert or knowledge-based systems. These systems are computer programs intended to solve real-world problems, achieving the same level of accuracy as human experts. Knowledge engineering is the discipline that has evolved to support the whole process of specifying, developing and deploying knowledge-based systems (Schreiber et al., 2000) This chapter will discuss the problem of knowledge elicitation for knowledge intensive systems in general
Advancing Models and Theories for Digital Behavior Change Interventions
To be suitable for informing digital behavior change interventions, theories and models of behavior change need to capture individual variation and changes over time. The aim of this paper is to provide recommendations for development of models and theories that are informed by, and can inform, digital behavior change interventions based on discussions by international experts, including behavioral, computer, and health scientists and engineers. The proposed framework stipulates the use of a state-space representation to define when, where, for whom, and in what state for that person, an intervention will produce a targeted effect. The "state" is that of the individual based on multiple variables that define the "space" when a mechanism of action may produce the effect. A state-space representation can be used to help guide theorizing and identify crossdisciplinary methodologic strategies for improving measurement, experimental design, and analysis that can feasibly match the complexity of real-world behavior change via digital behavior change interventions
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