1. Segmentation to increase your commercial effectiveness & efficiency

2. YMS 2010 indicates that Segmentation is on the rise again Segmentation is the foundation to commercial efficiency and effectiveness Build customer loyalty & trust Differentiate from competition Build strong brand Target through better segmentation Sustain revenue growth Highlight value of benefits of products Protect market share Communicate via online media Gain better understanding of customer Measure return on marketing efforts Innovate, product development & R&D Protect margins 36% 32% 32% 31% 29% 27% 26% 25% 24% 24% 24% 23% N= 621 In 2009 Top 5 Not in 2009 Top 5 % of respondents What will be your major marketing challenges for 2010? Source: THoM Yearly Marketing Survey 2008

3. However, most companies still use the most basic segmentation method, being firmographics in B2B Net Adjusted Index (%)

6. The appropriate segmentation method has to be selected in function of the specific business objective Segmentation methods Management areas Business objectives Firmo-graphic Needs & drivers Product & channel usage Value Sales Acquisition √ √ Up- & Cross-selling √ √ √ Loyalty √ √ Sales and after-sales channel √ √ √ √ Marketing Product/service portfolio & innovation √ √ Positioning/Value proposition √ √ Communication content √ √ Finance Marcom budget allocation √ √ Pricing √ √ √ √ Profitability √ Organization Organization structure √ √

8. For more information on segmentation, contact: Pieter Lievyns [email_address] +32 (0)495 29 31 14 The House of Marketing www.thom.eu