Segmentation and sales representative
What is more effective: the division into small geographical segments and the work of a sales representative regionally and in all directions or a large geographical segment, but several sales representatives and each works in its own direction?
That is, what comes first: geographical segmentation or, say, sectoral (in direction)?
It is said that the smaller the region, the better its sales representative works out. This is not entirely true. The size of the segment is influenced by the features of logistics (logistical shoulders), the development of distribution, and the features of distribution of leading players. Therefore, as a result of segmentation, it is important to get as simple and logical segments as possible, allowing for the effective promotion of your marketing object.
When a sales representative works with a package of goods that he understands and with a limited customer segment, the effectiveness of his management, due to simplicity, automation of some processes and the ability to integrate into client management, increases significantly. Darwin's theory illustrates everything here: “The evolution of organisms" (in this case, management and sales representatives): "development occurs faster in confined spaces under conditions of a limited diet." That is, in a small and simple market segment with a simple package of goods.
Geographical or industry segmentation?
The answer to this question lies in understanding the specifics of your product and brand and your market, more precisely, what the sales representative actually does.
If everything revolves around the logistics of a product, and the product itself is understandable to consumers of different target groups, then segmentation is performed taking into account the specifics of logistics.
If everything is built under the existing system of distribution of intermediaries, then segmentation is performed under the system adopted by the partner
If your marketing is based on serving the interests of the client, and you can precisely isolate several target groups with different needs, ways of consumption, features of purchase, then it is important to take this into account when segmenting.
Segmentation for sales logistics
In this case, it is important to supply and management "accurately and on time" understandable and accepted by the market marketing object. In this case, even if the sales representative is faced with diverse categories of customers, with large and small orders, but still, the management of working out these orders is not fundamentally different (the same SKU, the same set, only the figures for the number of product units are different and the value of volume discounts ), then the segmentation is carried out on a geographical basis. So they sell, distribute and segment the market under:
goods with mass advertising;
goods with complex logistics;
Segmentation for client groups
In this case, the entire trade management is based on the task of effective communication with customers. Communicating with the store manager of the "shop around the corner" category (narrow and simple assortment of goods) is one level of communication, while communicating with the directors of the store of the "Elite Alcohol" category are completely different: management, logistics, turnover, communication style.
If you understand that your marketing subject solves several or perfect other client tasks, the attitude of different client groups to your product is different, then marketing marketing and management should be fundamentally different.
If what has been said for FMCG is likely to be clear, then for B2B it is worth clarifying that even if there is a branded product with high market properties, the accompanying service, after-sales and accompanied goods are mandatory installation and commissioning services, but than the product itself. In addition, different client groups often require a different service and set of services. Understanding, taking into account and working out the specifics of the client, in this case, is more important than the convenience of the company and the consistency of its business processes. This is a "client market", and it must be understood!
About project groups and the role of sales marketing
It is worth drawing the attention of colleagues to the fact that, often, a number of products or customers do not fit into your segmentation. Well, for example, a product is a novelty or a top customer requiring a different management. How to be in this case? Well, it is clear that such customers and for such products need to work out individually. But how exactly?
Create a project team: VIP sales, development department, management group under the functional subordination of the marketing department.
A case study illustrating why a particular attitude, the attention of marketers, and work outside of accepted segmentation can be the beginning of a serious market success.
One of the regional managers of the company Wrigley was thinking about how to increase the sales of Orbit chewing gum in the HoReCa segment. The fact is that today everyone is accustomed to it, the chewing gum pillow served with the bill. Before this event of ideas, the idea of selling non-retail chewing gum simply did not exist. The idea is simple: chewing gum for the client for free but, nevertheless, with the inclusion of its cost in the cost of service. That is, the task of selling goods was solved by the fact that the value of the goods was eroded in the cost of the customer’s total check. This method has increased the total sales in his region by 11%. Not like sales representatives, but marketers should think about similar tasks and solving them. logistics, or from the goods or from the specifics of customers.