Job-Based Segmentation and
Targeting
Are you selling drill bits or holes?
Jason B. MacDonald, Ph.D.
Associate Professor of Marketing
College of Business and Economics
Jobs- Based Segmenting
Segmentation
• What?
– Separating large, heterogeneous markets into
smaller, homogeneous markets
• Why?
– Consistent market responses to communication
– Better understanding of behavior
• Segmentation and Design Thinking
– Focus on human values
– Show Don’t Tell
– Prototyping
© Jason B. MacDonald, 2012
Jobs- Based Segmenting
Focus on the Human Values
• Are you proposing or creating value?
• Who defines value?
© Jason B. MacDonald, 2012
Jobs- Based Segmenting
Understanding Markets
• Market = Current + Potential Consumers
• Motivation
– Do they have a problem that they want to fix
that can be fixed by your product?
• Ability
– Do they have the resources and knowledge to
identify and buy the product?
• Opportunity
– Do they have access to the product?
© Jason B. MacDonald, 2012
Jobs- Based Segmenting
Market Potential Iceberg
• Estimating market
potential is more about:
– recognizing what is under
the water.
– Figuring out how to get
potential customers to the
surface.
• Examples:
–
–
–
–
Microsoft Windows
Nintendo Wii
Facebook
Pinterest
MAO
M & A but no O
M & O but no A
M but no A or O
No M, A,
or O
© Jason B. MacDonald, 2012
Jobs- Based Segmenting
© Jason B. MacDonald, 2012
Jobs- Based Segmenting
Segmenting Dimensions
• Demographics
– Age, income, sex, etc.
• Firmographics
– Geographic, sales, number of
employees, etc
• Geodemographic
– Used by Google Adwords
• Psychographics
• Benefits Sought
– Focuses on the attributes
people seek in a good or
service
• Jobs based
– What job do you want to
accomplish with the product?
– Do you want a ¼ inch drill or a
¼ hole?
– Lifestyle, attitudes, etc.
© Jason B. MacDonald, 2012
Jobs- Based Segmenting
© Jason B. MacDonald, 2012
Jobs- Based Segmenting
Jobs to be done
• Customers hire products to get jobs done in
a specific situation.
• Milkshake Marketing
+
© Jason B. MacDonald, 2012
Jobs- Based Segmenting
Key Segmentation Terminology
• Generic Job Market
– Broadly defined job market that can be satisfied
by a wide variety of products can be broken
down into a large number of subordinate jobs.
• Job Market
– A more narrowly defined market where
employers (customers) for specific jobs look to
hire qualified employees (i.e., products,
solutions) and where employees try to get hired
by certain employers.
© Jason B. MacDonald, 2012
Jobs- Based Segmenting
Job Trees, Generic Job Markets, and
Job Markets
© Jason B. MacDonald, 2012
Jobs- Based Segmenting
Job Trees and Job Markets
We segment
within Job
Markets
Generic Job
Market
© Jason B. MacDonald, 2012
Jobs- Based Segmenting
Job Tree for Laundry Detergent
Make
clothes
smell
nice
Don’t want to
carry a lot
Get clothes
really clean
Clean
clothes at
Laundromat
Preserve
expensive
clothes
Avoid
irritation
Clean clothes
at home
Oil based
stains
Clean really
dirty clothes
Kid related
stains
Clean
Clothes
© Jason B. MacDonald, 2012
Jobs- Based Segmenting
Key Segmentation Terminology
• Qualifying dimension
– Why we are interested in a specific job market
– e.g., Do you get bored when you commute?
• Determining dimension
– Why you hire one employee (solution) over
another within a given job market.
– e.g., are you concerned with getting your cloths
dirty when you drive and eat?
Are “concerns about being healthy” a qualifying or
determining dimension?
© Jason B. MacDonald, 2012
Jobs- Based Segmenting
Cleans a Variety of Stains
Total Care
Bleach
Heavy
Duty
Gentle on
Clothing
Free and Gentle
Market
demand that
has not been
met by an
Existing
product
Very Specialized
© Jason B. MacDonald, 2012
Jobs- Based Segmenting
Market Grid for Online Plane Tickets
I want to save money when I travel
6
5
3
4
I have to meet a
client in Seattle on
Monday at 10 AM
2
I want to
visit my
parents over
the summer
1
I want to save time when I travel
© Jason B. MacDonald, 2012
Jobs- Based Segmenting
Market Grid for MBA Education
I want to gain basic knowledge about business
Career
Changer
Career Starter
I want to
gain business
experience
I want to improve
my business skills
Career
Enhancer
Career
Leapfrogger
(UG BBA)
I want to gain advanced knowledge about business
© Jason B. MacDonald, 2012
Jobs- Based Segmenting
Market Grid for Online Plane Tickets
I want to save money when I travel
6
5
3
4
I have to meet a
client in Seattle on
Monday at 10 AM
2
I want to
visit my
parents over
the summer
1
I want to save time when I travel
© Jason B. MacDonald, 2012
Jobs- Based Segmenting
Market Grid for MBA Education
I want to gain basic knowledge about business
Career
Changer
Professional
MBA
I want to improve
my business skills
EMBA
Career
Enhancer
Career Starter
Career
Start MBA
I want to
gain business
experience
Career
Leapfrogger
(UG BBA)
I want to gain advanced knowledge about business
© Jason B. MacDonald, 2012
Jobs- Based Segmenting
Jobs-Based Segmentation &
Cat Food
• Step 1: Team Share and Capture
– Review Cat Food websites
– Round Robin Contribute and Record
– Focus on quantity not quality!
• Step 2: Space Saturate and Group
–
–
–
–
Group similar items together; dissimilar items apart
Create Labels to identify possible jobs to be done
Create a Job tree starting with the most basic job
Identify potential Job Markets on your Job Tree
• Step 3: Segment and Position (Time permitting)
–
–
–
–
Create a market grid prototype for a chosen Job Market
Identify segments (higher-order jobs)
Position offerings (if your have time)
Select a segment
© Jason B. MacDonald, 2012
Jobs- Based Segmenting
Cat Food Job Tree
© Jason B. MacDonald, 2012
Jobs- Based Segmenting
Summary
• Value is defined by the consumer
• Jobs-to-be done vs. traditional segmentation
variables
• Job Trees and Job Markets
© Jason B. MacDonald, 2012
Jobs- Based Segmenting
Identifying Opportunities From
Different Starting Points
Start with the job
Who are the target customers?
In which circumstances do they most
often encounter the problem?
What objectives do they have in
addressing the job?
Who would hire this solution for this job?
For what jobs is the solution applicable?
In what circumstances will it be most
effective?
What objectives can it address?
What barriers does it overcome?
What barriers get in the way of
satisfying these objectives?
What are the solution’s capabilities?
What solution will satisfy the
customer job?
Start with the solution
© Jason B. MacDonald, 2012