Segmentation definition and general considerations

Theory

According to Philip Kotler, “Market segmentation is the sub-dividing of market into homogeneous sub-sections of customers, where any sub-section may conceivably be selected as a market target to be reached with a distinct marketing mix.”

The market represents the customers or the account(institution) that we want to engage with (sell to).

Homogenous means that 2 customers (accounts) from the same segment are similar when considering certain attributes - all customers with blue eyes may form a segment - and 2 customers from different segment are different - blue eyed customers are different than brown eyed customers

Marketing mix in Pharmaceuticals it generally means: messages, content, solutions and services (what), communication channel mix (how) and frequency of interactions (who)

We segment customers & accounts to support 3 types of decisions

• Who: (which customers) to target and how much (frequency) to invest
• What: differentiated messages, content, solutions to deliver to each segment
• How: through which channel mix to deliver them for each segment

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IMPORTANT

If it doesn’t help us differentiate the What, How and How Much between segments, it means our segmentation is not right

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