HELLO AND WELCOME!

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Santander X | Launch
Target Markets
Gary Ottley, MBA, PhD
April 2023
What is the most important part of

marketing
your business?

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Marketing – and growth –
is about understanding
your market, your
customers, and your
value proposition
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MARKETING IS…

…the activity, set of institutions, and processes for

creating, communicating, delivering, and
exchanging offerings that have value for customers,
clients, partners, and society at large.
-- American Marketing Association

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 Are All Customers
Good Customers?
What makes some better than others?
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 Total Addressable Market (TAM)
The revenue opportunity for a product or
service, assuming a 100% market share

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ESTIMATING A TOTAL ADDRESSABLE MARKET
But not all
Total Number of Customers customers
are the same

x
And not all
Annual Contract Value customers
(should) pay
(a.k.a. Price) the same price

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 Breaking down TAM with
Customer Segmentation and
Target Markets

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SEGMENTATION

Segmentation is the
process of dividing the
market into groups of
customers with different
characteristics, needs,
or wants
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WHY SHOULD YOU SEGMENT YOUR MARKET?

 Understand your customers’ different needs

 Understand which customers (and their needs) best match your

Value Proposition

 Identify opportunities for growth

 Allows you to tailor your marketing efforts and campaigns

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CONSUMER SEGMENTATION “B2B” SEGMENTATION

• Demographic • Geographic / Location

– Age, income, gender, ethnicity

• Psychographic
– Shared values, beliefs, personalities,
interests, lifestyles
• Volume / Customer Size
• Behavioral
– What consumers actually do
• Value
• Benefit / Value
– Based on perceived value 13
 Segmentation Targeting

HOW YOU WHO YOU

DIVIDE UP CHOOSE TO
THE MARKET FOCUS ON
Consumers Businesses

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 Segmentation Targeting

DEMOGRAPHIC
PSYCHOGRAPHIC
BEHAVIORAL
GEOGRAPHIC
BENEFITS
VOLUME
VALUE 15

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 Segmentation Targeting

DEMOGRAPHIC Who are your people?

PSYCHOGRAPHIC
BEHAVIORAL Are there enough of them?
GEOGRAPHIC
Are they profitable for you?
BENEFITS
VOLUME
VALUE 16

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 TARGET MARKET ATTRACTIVENESS
Can you recognize the members of the
Identifiable
Target Market?

Can you serve the needs of the Is the Target Market large
Target Market profitably? Profitable Substantial and profitable enough?

TARGET
ATTRACTIVENESS

Will the demands/needs of the

Sustainable Reachable Do you have access to
Target Market change…and can
the Target Market?
you keep up?

Responsive Will the members of the Target Market

respond to your Value Proposition and
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Differentiation? 17
BREAKOUT #1:
HOW YOU SEGMENT, WHO YOU TARGET
In Small Groups:
• How do you segment your current market? (Do you?)
• Choose one or a combination of segmentation methods

• Describe your current Ideal Customer Target

• What makes them “ideal” to you?

• What is your Value Proposition and does it meet the needs of your
“Ideal” Customer?
• Yes/No, and why/why not?
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 BREAKOUT 1 SAMPLE
“Ideal” Customer Target Value Proposition?
Customer Segmentation

• •

• •

• •

• •

• •

• •

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 Growth from

Reaching (New?) Target Markets

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 Segmentation Targeting Positioning

WHAT YOU
HOW YOU WHO YOU SAY TO THEM
DIVIDE UP CHOOSE TO
WHAT YOU
THE MARKET FOCUS ON
Other
DO FOR
Consumers
Businesses THEM 21

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THE BIG GROWTH QUESTIONS ARE…

How does your

What do you
Target Customer Where do they purchase?
How do they purchase?
want them to
make buying Why do they purchase?
What and how do they pay?
do differently?
decisions?

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HOW TARGET CONSUMERS MAKE DECISIONS

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HOW TARGET BUSINESS CUSTOMERS MAKE
DECISIONS

Problem Need Product/Service Supplier Proposal Supplier Performance

Recognition Description Specification Research Solicitation Selection Review

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B2C VS B2B DECISION MAKING
Consumer B2B

Need Recognition Problem recognition

Need Description
Information Search
Product Specification

Evaluation of Supplier Research

Alternatives
Proposal Solicitation

Purchase Supplier Selection

Performance Review
Postpurchase Behavior

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B2C VS B2B DECISION MAKING
B2B
Consumer Minimize my
Problem recognition costs
Need Recognition

Need Description Maximize my

Information Search
Product Specification
Economic revenues

Rationality
Evaluation of Supplier Research Improve my
Alternatives • Complexity processes
Proposal Solicitation • # of buying criteria
• # of people involved in both
Purchase Supplier Selection the selling and buying
organizations
Performance Review
Postpurchase Behavior

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BREAKOUT #2:
HOW YOUR IDEAL CUSTOMER MAKES DECISIONS
Consumer B2B

Need Recognition Problem recognition • Put yourself in the role

Need Description
of your Ideal Customer
Information Search
Product Specification • Choose any one
Evaluation of Supplier Research
Decision Stage
Alternatives
Proposal Solicitation • List all possible actions
Purchase Supplier Selection your Ideal Customer
Performance Review
could take in that Stage
Postpurchase Behavior
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PROBLEM RECOGNITION

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NEED DESCRIPTION

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PRODUCT/SERVICE SPECIFICATION

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SUPPLIER RESEARCH

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PROPOSAL SOLICITATION

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SUPPLIER SELECTION

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PERFORMANCE REVIEW

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THURSDAY

• Target Market Insights

• Target Market Sizing

• TAM
• SAM
• SOM

• Positioning for Target Markets

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Thank You!