Segmentation in Millenium Era

Is segmentation and targeting still relevant in the millennium? Philip Kotler, Hermawan Kertajaya, and Iwan Setiawan wrote this in the Marketing 3.0 book, that in the Information Technology era where consumers connect with each other more often, have different concepts. Not segmentation, targeting and positioning, but communitization or targeting in the community. Marketers market their products to more and more communities.

Even so Kotler’s opinion, if compared between segmentation and communitization, communitization contains segmentation and targeting as well. Segmentation divides the market into small segments, and each segment has the same characteristics of interest, even though they are not connected. Whereas communitization is a group of consumers or just consider segments that are connected to each other. As a community, they serve one another among them. According to Godin, the community does not serve business marketers. Even so, communitization is one type of market segment based on likeness. Even the segment has formed coordination with each other.

Thus segmentation and targeting are still important in the millennium era. When business competition is getting tougher, in addition to trying to make better and more beneficial products, it also strives to enter different market segments that are not affordable to competitors or not too tight competition.

Kotler, Hermawan and Iwan in Marketing 4.0 explained again, the difference between STP (segmentation, targeting and positioning) with the community. The community is a segment, or a small group in the market. But the difference is, because they are connected, they reject marketing interruptions, spam, and irrelevant advertisements. STP still considers the segment a passive target to accept persuasion, while communitization is an active group that has their own will, serving each other between them. The best approach is to observe their development and participate in serving the community members.

It’s true that Kotler and his friends say they reject marketing interruptions, spam and irrelevant advertisements. Even so relevant ads are still possible. Examples of advertising on Google Adwords and Facebook Ads. Ads on Google Adwords allow people to place ads that are relevant to the keywords that someone is looking for. The keyword reflects interest. Advertising on a keyword means an advertisement for a group of people who are expected to match their interests. For example a hotel ad in Karimun Java, can be displayed for people who write keywords: cheap hotel Karimun Java, tourism Karimun Java, the best hotel Karimun Java. Ads on facebook ads can also target groups that have particular interests. Facebook has artificial intelligence that allows it to detect someone’s interest, then Facebook lists the interests of Facebook users. Thus, advertising on Facebook and Google seeks to bring together advertisements with relevant target markets and avoid irrelevant target markets.

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