job-based segmentation and targeting jason b. macdonald, ph.d. associate professor of marketing...

Job-Based Segmentation and Targeting

Jason B. MacDonald, Ph.D.Associate Professor of Marketing

College of Business and Economics

Are you selling drill bits or holes?

Jobs- Based Segmenting

© Jason B. MacDonald, 2012

Segmentation• What?

– Separating large, heterogeneous markets into smaller, homogeneous markets

• Why?– Consistent market responses to communication– Better understanding of behavior

• Segmentation and Design Thinking– Focus on human values– Show Don’t Tell– Prototyping



Focus on the Human Values• Are you proposing or creating value?• Who defines value?



Understanding Markets

• Market = Current + Potential Consumers• Motivation

– Do they have a problem that they want to fix that can be fixed by your product?

• Ability– Do they have the resources and knowledge to

identify and buy the product?• Opportunity

– Do they have access to the product?



Market Potential Iceberg

• Estimating market potential is more about:– recognizing what is under

the water.– Figuring out how to get

potential customers to the surface.

• Examples:– Microsoft Windows– Nintendo Wii– Facebook– Pinterest

MAO

M & A but no OM & O but no A

M but no A or O

No M, A, or O



Segmenting Dimensions• Demographics

– Age, income, sex, etc.• Firmographics

– Geographic, sales, number of employees, etc

• Geodemographic– Used by Google Adwords

• Psychographics– Lifestyle, attitudes, etc.

• Benefits Sought– Focuses on the attributes

people seek in a good or service

• Jobs based– What job do you want to

accomplish with the product?– Do you want a ¼ inch drill or a

¼ hole?



Jobs to be done• Customers hire products to get jobs done in

a specific situation.

• Milkshake Marketing

+



Key Segmentation Terminology

• Generic Job Market– Broadly defined job market that can be satisfied

by a wide variety of products can be broken down into a large number of subordinate jobs.

• Job Market– A more narrowly defined market where

employers (customers) for specific jobs look to hire qualified employees (i.e., products, solutions) and where employees try to get hired by certain employers.



Job Trees, Generic Job Markets, and Job Markets



Job Trees and Job MarketsWe segment

within Job Markets

Generic Job Market



Job Tree for Laundry Detergent

Clean Clothes

Make clothes smell nice

Clean really dirty clothes

Avoid irritation

Oil based stains

Kid related stains

Preserve expensive

clothes

Clean clothes at home

Clean clothes at

Laundromat

Don’t want to carry a lot

Get clothes really clean



Key Segmentation Terminology

• Qualifying dimension– Why we are interested in a specific job market– e.g., Do you get bored when you commute?

• Determining dimension– Why you hire one employee (solution) over

another within a given job market.– e.g., are you concerned with getting your cloths

dirty when you drive and eat?Are “concerns about being healthy” a qualifying or

determining dimension?



Cleans a Variety of Stains

Gentle onClothing

Very Specialized

HeavyDuty

Marketdemand thathas not been

met by anExistingproduct

Total Care

Bleach

Free and Gentle



I have to meet a client in Seattle on Monday at 10 AM

I want to visit my

parents over the summer

I want to save money when I travel

1

2

4

56

3

Market Grid for Online Plane Tickets

I want to save time when I travel



I want to improve my business skills

I want to gain business

experience

I want to gain basic knowledge about business

Market Grid for MBA Education

I want to gain advanced knowledge about business

Career Changer

Career Enhancer

Career Leapfrogger

(UG BBA)

Career Starter



I have to meet a client in Seattle on Monday at 10 AM

I want to visit my

parents over the summer

I want to save money when I travel

1

2

4

56

3

Market Grid for Online Plane Tickets

I want to save time when I travel



I want to improve my business skills

I want to gain business

experience

I want to gain basic knowledge about business

Market Grid for MBA Education

I want to gain advanced knowledge about business

Career Changer

Career Enhancer

Career Leapfrogger

(UG BBA)

Career Starter

EMBA

Professional MBA Career

Start MBA



Jobs-Based Segmentation &Cat Food

• Step 1: Team Share and Capture– Review Cat Food websites– Round Robin Contribute and Record– Focus on quantity not quality!

• Step 2: Space Saturate and Group– Group similar items together; dissimilar items apart– Create Labels to identify possible jobs to be done– Create a Job tree starting with the most basic job– Identify potential Job Markets on your Job Tree

• Step 3: Segment and Position (Time permitting)– Create a market grid prototype for a chosen Job Market– Identify segments (higher-order jobs)– Position offerings (if your have time)– Select a segment



Cat Food Job Tree



Summary

• Value is defined by the consumer• Jobs-to-be done vs. traditional segmentation

variables• Job Trees and Job Markets



Identifying Opportunities From Different Starting Points

Start with the job

Who are the target customers?

Who would hire this solution for this job?

In which circumstances do they most often encounter the problem?

What objectives do they have in addressing the job?

What barriers get in the way of satisfying these objectives?

Start with the solutionWhat solution will satisfy the

customer job?

What are the solution’s capabilities?

What barriers does it overcome?

What objectives can it address?

In what circumstances will it be most effective?

For what jobs is the solution applicable?

job-based segmentation and targeting jason b. macdonald, ph.d. associate professor of marketing...

Documents

jobs based segmenting

jobbased segmentation

specific jobs

service jobs

clean slide

specific job market

o slide

defined job market