Acquisitive Growth – Workshop 3 (Segment Focus)
The Appleton Greene Corporate Training Program (CTP) for Acquisitive Growth is provided by Mr. Chicles Certified Learning Provider (CLP). Program Specifications: Monthly cost USD$2,500.00; Monthly Workshops 6 hours; Monthly Support 4 hours; Program Duration 24 months; Program orders subject to ongoing availability.
If you would like to view the Client Information Hub (CIH) for this program, please Click Here
Learning Provider Profile
Mr Chicles is an approved Certified Learning Provider (CLP) at Appleton Greene who is a business leader and strategist with broad experience in the global multi-industrial, aerospace and defense sectors. He is a seasoned operational leader of global industrial businesses, leading transformational strategies in highly competitive markets.
As a senior, C-suite strategist for multiple major industrial corporations he has led multiple mergers, acquisitions, divestitures and restructurings, as well as corporate break-ups and spin-offs. He has a distinguished track record of successful transformations of complex organizations in dynamic and uncertain market conditions while engendering the trust and buy-in of employees, customers, vendors, owners, corporate leadership and boards of directors.
A highly engaged leader at the personal and team level he has demonstrated the ability to engender effective senior teams and boards. He’s also an active mentor, teacher and community leader.
Mr Chicles is an active board member with AES Seals, global leader in sustainable reliability engineering, and Micro Technologies Inc, an electronics and advanced manufacturing company. He is a principal partner with ProOrbis Enterprises®, a management science consultancy with premier clients such as the US Navy and PwC, as well as the principal of Xiphos Associates™, a management and M&A advisory. Recently, he served as Board Director and Chairman of Global Business Development with Hydro Inc. the largest independent pump and flow systems engineering services provider in the world.
He was President of ITT’s Industrial Process / Goulds Pumps business segment a global manufacturer of industrial pumps, valves, monitoring and control systems, and aftermarket services for numerous industries with $1.2 billion in revenue, 3,500 employees and 34 facilities in 17 countries. Preceding this role he served as Executive Vice President of ITT Corporation overseeing the creation of a newly conceived ITT Inc. following the break-up of the former ITT Corporation to establish its strategy and corporate functions such as HR, communications, IT and M&A, building the capabilities, policies and organizations for each.
He joined ITT Corporation’s executive committee as its strategy chief in 2006 and instituted disciplined strategic planning processes and developed robust acquisition pipelines to respond to rapidly changing markets. Created successful spin-offs of 2 new public corporations Exelis Inc. and Xylem Inc. ITT Corporation was named one of “America’s Most Respected Corporations” by Forbes for exemplary management and performance during his tenure there.
Before joining ITT, Mr Chicles served as Vice President of Corporate Business Development and head of mergers and acquisitions for American Standard / Trane Companies, where he initiated and closed numerous transactions and equity restructurings globally.
Additionally, he created and led the corporate real estate function which entailed more than 275 real estate transactions around the world.
He began his career at Owens Corning rising through the ranks in various operational roles to Vice President of Corporate Development.
Recently, he taught advanced enterprise strategy at Stevens Institute of Technology as an adjunct professor and still supports start-ups through the Stevens Venture Center. He continues to be active as the Founding Board Member with several successful start-up technology businesses and non-profit organizations. A community leader, Mr Chicles has held the role of President of the Greek Orthodox Cathedral in Tenafly, N.J., He also led trips abroad to Cambodia and Costa Rica to build sustainable clean-water solutions and affordable housing.
His formal education includes earning a Masters of Business Administration from The Wharton School at the University of Pennsylvania, and a Bachelors in Finance from Miami University.
MOST Analysis
Mission Statement
Every company aspires to grow. But, in a market where competition is fierce, inorganic business growth requires insight and innovation. Segmenting the market and customers is among the most effective techniques to promote acquisitive growth. Yet as numerous businesses have shown, artful segmentation can result in a significant competitive advantage. The purpose of segmentation is to inform your marketing approach. Using this method, it is feasible to recognize and categorize groups of potential clients based on their shared preferences, needs, and interests. This method effectively identifies the demographics most likely to value a specific good or service you provide. Furthermore, it may assist you in positioning that service so that it outperforms that of your rivals.
Objectives
01. Industrial Segmentation: departmental SWOT analysis; strategy research & development. Time Allocated: 1 Month
02. Market-Size Based Segmentation: departmental SWOT analysis; strategy research & development. Time Allocated: 1 Month
03. Product-Based Segmentation: departmental SWOT analysis; strategy research & development. Time Allocated: 1 Month
04. Value-Based Segmentation: departmental SWOT analysis; strategy research & development. Time Allocated: 1 Month
05. Channel-Based Segmentation: departmental SWOT analysis; strategy research & development. Time Allocated: 1 Month
06. Supply Chain Segmentation: departmental SWOT analysis; strategy research & development. Time Allocated: 1 Month
07. Behavioral Segmentation: departmental SWOT analysis; strategy research & development. 1 Month
08. Geographic Segmentation: departmental SWOT analysis; strategy research & development. Time Allocated: 1 Month
09. Demographic Segmentation: departmental SWOT analysis; strategy research & development. Time Allocated: 1 Month
10. Generational Segmentation: departmental SWOT analysis; strategy research & development. Time Allocated: 1 Month
11. Challenges & Pitfalls: departmental SWOT analysis; strategy research & development. Time Allocated: 1 Month
12. Emerging Segments: departmental SWOT analysis; strategy research & development. Time Allocated: 1 Month
Strategies
01. Industrial Segmentation: Each individual department head to undertake departmental SWOT analysis; strategy research & development.
02. Market-Size Based Segmentation: Each individual department head to undertake departmental SWOT analysis; strategy research & development.
03. Product-Based Segmentation: Each individual department head to undertake departmental SWOT analysis; strategy research & development.
04. Value-Based Segmentation: Each individual department head to undertake departmental SWOT analysis; strategy research & development.
05. Channel-Based Segmentation: Each individual department head to undertake departmental SWOT analysis; strategy research & development.
06. Supply Chain Segmentation: Each individual department head to undertake departmental SWOT analysis; strategy research & development.
07. Behavioral Segmentation: Each individual department head to undertake departmental SWOT analysis; strategy research & development.
08. Geographic Segmentation: Each individual department head to undertake departmental SWOT analysis; strategy research & development.
09. Demographic Segmentation: Each individual department head to undertake departmental SWOT analysis; strategy research & development.
10. Generational Segmentation: Each individual department head to undertake departmental SWOT analysis; strategy research & development.
11. Challenges & Pitfalls: Each individual department head to undertake departmental SWOT analysis; strategy research & development.
12. Emerging Segments: Each individual department head to undertake departmental SWOT analysis; strategy research & development.
Tasks
01. Create a task on your calendar, to be completed within the next month, to analyze Industrial Segmentation.
02. Create a task on your calendar, to be completed within the next month, to analyze Market-Size Based Segmentation.
03. Create a task on your calendar, to be completed within the next month, to analyze Product-Based Segmentation.
04. Create a task on your calendar, to be completed within the next month, to analyze Value-Based Segmentation.
05. Create a task on your calendar, to be completed within the next month, to analyze Channel-Based Segmentation.
06. Create a task on your calendar, to be completed within the next month, to analyze Supply Chain Segmentation.
07. Create a task on your calendar, to be completed within the next month, to analyze Behavioral Segmentation.
08. Create a task on your calendar, to be completed within the next month, to analyze Geographic Segmentation.
09. Create a task on your calendar, to be completed within the next month, to analyze Demographic Segmentation.
10. Create a task on your calendar, to be completed within the next month, to analyze Generational Segmentation.
11. Create a task on your calendar, to be completed within the next month, to analyze Challenges & Pitfalls.
12. Create a task on your calendar, to be completed within the next month, to analyze Emerging Segments.
Introduction
What functions come to mind when you think about the crucial elements that determine acquisition success? Perhaps sales, operations, human resources, and finance. Marketing, though?
Yet, according to Mckinsey, marketing plays a crucial role in deal success and shouldn’t be neglected based on their experience and discussions with top M&A executives. Instead, marketing should take the initiative to establish the new organization’s brand strategy and create innovative, compelling value propositions. The value proposition’s narrative should then be delivered by marketers to drive above-market growth.
It is essential to understand the key difficulties that CEOs and chief marketing officers should address to have an impact because the integration of marketing’s role is so broad—ranging from strategy to tactical brand execution. Executives underlined the significance of getting six things right—the “six Ss”—in a 2020 Mckinsey research study.
The six Ss are:
• Story. Define the new organization’s value proposition
• Segments. Refresh your view of the market
• Service. Delight your most valuable customers
• Share. Deliver consistent value over time
• Science. Take an objective, fact-based approach to setting brand strategy
• Scope. Tackle less, not more, on and after Day 1.
Applying these six Ss can boost the success of marketing integration, measured by revenue synergies captured, as much as 1.5 to 2.0 times (exhibit).
Reexamining customer segmentation is made possible by integration. Marketing have to take the initiative in the discussion and suggest ways in which the whole range of goods, services, and solutions will better satisfy the needs of the united consumer base. Marketing should assess how its organizational structure and operating model should change to support the updated market view.
Think about one mobile telecom merger’s approach to segmentation. One company (early adopter) introduced a needs-based approach to segmentation, whereas the other introduced a functional approach (low cost, no frills). The market was changing quickly as consumers desired lifestyle solutions rather than just straightforward, practical voice-to-voice or text-to-text communication. The techniques catered to various market segments.
The CMO carefully reviewed the customer segmentation. The analysis examined the benefits and drawbacks of the traditional segmentation methods, speculated on how customers will use technology in the future, and assessed how challenging it would be to implement a novel segmentation method through the channels that are already in use.
Over a period of months, the new organization introduced a revised segmentation that was more technology-focused than communication-focused. This segmentation laid the groundwork for the organization to view new competitors (such as Google, smartphone manufacturers, and other tech companies), define value propositions, and pursue partnerships and M&A opportunities. Market-leading retention and revenue growth per customer were made possible by segmentation and its assistance in implementing value propositions.
If you would like to view the original Mckinsey article, please click here: www.mckinsey.com
Market segmentation can be a straightforward and inexpensive process. Or, given the vast amount of data companies now have, it can become complicated and expensive. Thanks to technology, we can create “markets of one.” But making the leap to one-to-one marketing may not be right for every company or brand — now or ever. So if your focus is on acquisitive growth, you may want to rethink your market segmentation strategy first.
Why segment your market?
Every product, as savvy marketers are aware, requires a target market. They are aware that no good or service can satisfy everyone’s needs. The market is segmented into segments based on shared demands and features. Members of the group are likely to have comparable purchasing habits as a result of these characteristics.
Market segmentation is a tried-and-true method for acquiring growth in both the consumer and business-to-business sectors. Every step of the product commercialization process can be facilitated with a solid segmentation model. When done properly, segmentation also boosts a business’s profitability by:
• Develop products and services that meet the needs of various segments
• Focus marketing resources on segments with the most potential
• Craft marketing messages that resonate with target audiences
• Set prices that optimize the balance between profitability and demand.
Businesses that correctly segment their markets and comprehend their clients benefit greatly. That also involves higher profits. According to a Bain & Company survey, organizations with segmentation strategies that enabled them to customize their products to the right client categories experienced up to 10% more earnings over a five-year period than those with less successful segmentation. Even while just 25% of executives polled thought their organizations were efficiently using customer segmentation, 81 percent of executives stated it was essential for boosting revenues.
Understanding Market Segmentation
Companies can generally use three criteria to identify different market segments: