Smart Segmentation Breeds Success

By Mike Farrell -- Multichannel News, 10/10/2011 12:01:00 AM

New York — Market segmentation is critical for both cable programmers and operators, but the way that segmentation is done can be the difference between a successful marketing campaign and one that falls short of expectations, according to a panel discussion at the CTAM in New York conference.

Cable programmers have long segmented networks and shows to specific groups — hence the proliferation of niche channels for women, food lovers and sports fans, Frank N. Magid Associates senior vice president Jill Rosengard Hill said during the panel “Segmenting for Success.” Hill argued that programmers need to take even that segmentation a step further, adding that the competitive advantage is being seized by marketers that are offering smart, innovative segmentation for audiences.

“The key is actionability,” Hill said.

Socratic Technologies executive vice president Young Ko said that one innovative way to segment a market is by product rather than behavior. Heis company surveys customer segments based on their ideal product bundle.

Once that ideal bundle is identifi ed, the provider has an offering with specific benefits and features that target that user’s audience and needs.

Cox Communications vice president of marketing sciences Tony Maldonado said culture is equally important in developing segmentation strategies, adding that educating front-line employees is an important part of success.

“All the best companies do one thing, and that is they execute well,” Maldonado said, adding that it is important to limit the number of segmentation schemes that are active within the organization, but make those schemes pervasive throughout the organization.

Scripps Networks vice president of Food Network and Fine Living research Gabe Gordon said even with the best segmentation schemes some consumers just don’t fit into a specific mold.

Some people, he said, are “almost unsegmentable,” adding they may gravitate towards on particular segment but actually cross multiple segments throughout their day.

ESPN VP of integrated media research Glenn Enoch said that it is important for companies not to jump the gun in the process, something he called “premature segmentation,” lest you pigeonhole whole groups of people into categories that haven’t fully developed or from which they may soon migrate.