Say, when using an accommodation, would you prefer sleeping at a five or three-star hotel? And, more important, why? Also, are you aware of the fact that this preference may be linked to other buying decisions you make? Marketers, as well as the more strategic operating artists in this industry, do think so.
A few weeks ago, a strategy for determining your international market selection as an artist was developed. It has to be said, however, that listing the markets you want to enter as an artist is the first step in creating a truly unique and sustainable position. A method to do this is using the segmentation, targeting and positioning theory. In this article, we will give a brief introduction to this theory, and explain how you can use it as an artist to build your unique position.
The segmentation, targeting and positioning process displays itself as follows.
The first step, segmentation, groups customers with similar needs into customer segments and then determines the characteristics of customers in those segments. At its most basic, segmentation if simply separation of a heterogeneous group of music consumers with different needs into homogenous subgroups or segments of customer with similar needs and preferences. Without segmentation, artists would often overlook opportunities as they provide a single solution for everybody. With this information in mind, we can safely say segmentation benefits both the artist and the consumer in a numbers of ways.
There are several means to segment a market. However, for a segmentation to be useful, it must be identifiable, substantial, accessible, stable, differentiable and actionable. One approach that meets all these points, is by asking the following questions:
- Who are the music consumers?
- What are their purchasing preferences?
- Why do music consumers truly consume a product?
Now that you have a clear segmentation in your market, based on the who, what and why questions, the time has come to decide which segments you will pursue to target and which not. In a corporate situation, targeting can be done on a customer segment or individual level. Artists, however, are -in all cases- advised to target their customers on a segment level, due to the large amount of consumers per segment.
In general, three factors influence the selection of segments.
- First, an artist should consider the characteristics of various segments, such as how large they are, how fast the segment is growing and the expected profitability of each segment.
- Second, an artist should analyse its own competencies based on its personal objectives, competencies and internal resources.
- Last, but certainly not least, artist should identify the competition’s characteristics in each market. This analysis should be done alongside the strength, intensity and resources of the competition.
Segmentation and targeting significantly influence an organization’s resource allocation and marketing strategy. Therefore, forming a positioning strategy after conducting a successful segmentation and targeting analysis is a logical and relatively easy third step.
In its basis, your positioning strategy as an artist should consist of the following items:
- Your product strategy, determining what actual offers you will bring to your segments. This does not only include your music, but also your live performances and the actual value merchandise that can be bought by your fans.
- Your pricing strategy, which is heavily influenced by the purchasing preferences of your consumers and the power of the competition.
- Your communication strategy, which is linked to the way you want to build a sustainable relationship with your fans.
In the beginning of this article we stated that listing the markets you want to enter as an artist is the first step in creating a truly unique and sustainable position. A method to create such a position is using the segmentation, targeting and positioning theory. We discussed that the first step, segmentation, groups customers with similar needs into customer segments and then determines the characteristics of customers in those segments, targeting determined which markets you will enter and in the positioning phase you determine the means by which you will enter this market.
As your marketing entertainment consultant, Nimble Agency can develop a particular international marketing approach for your entity. Our services consist of the development of full and complete plans, as well as project or category specific tasks. By delivering these services, we will contribute to accelerating your artistic or corporate vision to targeted worldwide scale.