Reading Reflection Week #7

My biggest surprise in the reading was the need to use different segmentations for different purposes. As a consumer, I don’t necessarily sit around and wonder what type of segmentation goes into advertising vs. the development of new products. After reading the article, it does make sense that social scientists applied their modes of analysis to business problems, and how using attitudinal indicators similar to those elicited by personality tests, psychologists were able to carve our marketing segments based on shared worldview.  However, the article does demonstrate using the “Pepsi Generation” ad to show that this concept was good at brand reinforcement and positioning, but that it the drivers of commercial activity were the long held idea of purchasing history, product loyalty, and propensity to trade up.

One piece of information that I found a little confusing was how a company might find its way back to meaningful segmentation. The article states that one would need to gather data on emerging social, economic and technological trends that may alter purchasing and usage patterns. While this makes perfect economic sense, my confusion is how we know that these emerging patterns do occur, and what might happen if an economic event changed those patterns.

One question I would ask would be how one develops a Plan B, in the event all the planets don’t align correctly. Basically, if an economic event occurs, what is the alternate plan to remain competitive? Obviously, this question would be important for one to remain in the game. Next, I wonder how management knows when to revise their business model, if in fact, this is expedient? This question too is relevant because if we don’t changing with emerging consumer, how do we stay afloat.

Once again, I don’t find any errors in this article, however, I wonder if there are other sides of the conversation? Also, does this market segmentation give long-term advantage, or just a temporary commercial advantage? And, how would that be determined in advance.