Customer Segment Market Distribution

Introduction

This video shows how customer segments may be distributed in the market place. Understanding where your target segments live in the market will guide the retail location strategy for your stores.

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  • In our last video we ended with four segments. Let’s see how segments might look in a geography. Let’s take a look at a city. This is Chicago but it could be any city/ [important to note this is just an illustration]
  • We can see the downtown skyline the tall white buildings and lots of neighborhoods spread out all over the city. We have a handful of different customers emerging from these neighborhoods. A few of these have large purchasing power and some have a little less.
  • Now our customers are shifting from white to red green blue and yellow. They look randomly spread out. It could also be that the segments start to clump together. As an example, green segments could be near other green segments, blue near blue. This example is the little extreme, but hopefully communicates the point.
  • In summary, we have segments with 1.) different purchasing power, 2.) different preferences, 3.) distributed within the geography.
  • Now let’s take a closer look at the retailers who are competing for these customers.