| Implementing marketing segmentation is
| |
| | Segmentation can leverage the value of
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| never a slam dunk and health plans have
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| | in-house data and make additional data
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| more difficulty than other firms because
| |
| | worth the cost.5. Advertising agencies
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| of their regulatory environment. But the
| |
| | often drive segmentation research and use
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| pattern of decisions is simple when they
| |
| | it well. For example, the client has
|
| are broken into steps.First, market
| |
| | chosen to target the "mass affluent" as
|
| segmentation research is needed to
| |
| | defined by some combination of assets and
|
| identify and define market segments.
| |
| | attitudes. Media buyers need to know the
|
| This process is fairly involved and is
| |
| | magazines this segment reads and the
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| described elsewhere. (See for example
| |
| | types of web sites and search engines
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| the whitepapers at The research helps
| |
| | they use. Copy writers will incorporate
|
| firms decide which segmentation strategy
| |
| | the deep values of this segment into
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| to use. These strategies may be based on
| |
| | commercial scripts. Creative directors
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| purchasing behavior, consumer
| |
| | will insist that the visual imagery of
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| characteristics, lifestyle information,
| |
| | advertising be consistent with what the
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| or other market information.Second the
| |
| | "mass affluent" look like, talk like, and
|
| team must ask, "which segment or segments
| |
| | do. Account planners will concentrate
|
| does the health plan wish to target?"The
| |
| | their research on the target segment,
|
| market research will provide objective
| |
| | using the classification tool to recruit
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| information facilitating this decision.
| |
| | and screen the right people.6. Call
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| Most experts would agree that it is
| |
| | centers. Health plans can ask segment
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| foolish to target a segment to which you
| |
| | classification questions in their
|
| do not now have a reasonably good fit
| |
| | response call-in customer interviews and
|
| (e.g. the GMC truck division pursuing a
| |
| | in their telephone enrollment interviews.
|
| "green", hybrid-oriented
| |
| | The classification can help find the best
|
| segment).Finally, the fun begins. Once
| |
| | plan for each caller and this will help
|
| target segments have been decided on,
| |
| | assure better retention.7. Channel mix.
|
| there are at least seven ways to use
| |
| | Segments may have different affinities
|
| segmentation.1. Positioning. Take health
| |
| | for different distribution and sales
|
| care as an example. Most health plans
| |
| | channels. Perhaps one segment of buyers
|
| offer multiple plans where premiums and
| |
| | is unreceptive to e-mail communications;
|
| access to branded drugs and providers
| |
| | another segment may never accept a
|
| differ. There are segments of the market
| |
| | personal visit but will read your
|
| willing to trade lower premiums for more
| |
| | e-mail.It is the exceptional firm, but
|
| restrictions on access. But other
| |
| | some have literally organized themselves
|
| segments are not willing to make this
| |
| | around segments. In these firms, any
|
| trade. Market segmentation will help
| |
| | employee can tell you who their target
|
| companies re-position their "basic" and
| |
| | is, and who the target is not. If they
|
| "premier" plans to match segments'
| |
| | have multiple brands, each brand is
|
| motivations and concerns Sticking with
| |
| | adapted to fit one segment. Brand
|
| health care for an example, some seniors
| |
| | tracking is done at the segment level.
|
| are motivated to act because of service,
| |
| | The advertising agency for each brand is
|
| convenience, or help with health
| |
| | expected to zero in on that segment in
|
| maintenance. If segmentation is
| |
| | its messaging and media selection.
|
| implemented, more seniors will find the
| |
| | Because some segments inherently offer
|
| right product for them.2. New markets.
| |
| | higher or lower unit margins, financial
|
| Products or brands could be positioned to
| |
| | expectations of the brands are adjusted
|
| meet the needs of a segment the company
| |
| | accordingly. In health care, one example
|
| does not now serve very well. For
| |
| | is Wellpoint's commercial operation
|
| example, many limited income seniors have
| |
| | organized around products and services
|
| been automatically enrolled in Medicare's
| |
| | for different segments of
|
| Part D plans, but they don't have to stay
| |
| | employers.ConclusionMarket segmentation
|
| there. If a health plan knows what this
| |
| | is a far-reaching strategy that can
|
| segment's concerns are, it could induce
| |
| | benefit health plan players. Once the
|
| them to switch.3. Geography. Health plans
| |
| | targets have been set, the firm has an
|
| have found it productive to emphasize
| |
| | opportunity to consolidate management of
|
| different products and selling strategies
| |
| | operations around its segmentation
|
| in different geographies depending on the
| |
| | strategy. Every business function can be
|
| mix of segments in those geographies.4.
| |
| | mobilized to take full advantage of the
|
| Direct marketing is all about
| |
| | opportunities that market segmentation
|
| segmentation, but it is often focused
| |
| | offers.
|
| narrowly on internal sales analysis.
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| |
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