3.6 Putting It Together: Segmentation and Targeting

Remember Chumber, your new employer from the beginning of this module?

Now that you’ve learned something about segmentation and targeting strategy, let’s return to the request your boss made for recommendations about whom Chumber ought to target and why.

Remember that Chumber’s product is an automated, fully online system for checking the references of job candidates. Chumber’s customers are other companies. After learning about market segmentation, you know that “all companies” are too broad to be a useful target market. Even on your first day of work, you can guess that marketing to every company you can find isn’t going to be a smart strategy.

Looking back at the previous 4 years for employment by industry we can use StatsCan Labour data to help you identify which industries could see some of the biggest gains in employment in the coming years.

Canada Employment Both Sexes 15 years and Over[1]
North American Industry Classification System (NAICS)4 2015 2016 2017 2018 2019
Persons
Total, all industries 5 17,946.60 18,079.90 18,416.40 18,657.50 19,055.70
Goods-producing sector 6 3,870.40 3,833.00 3,875.90 3,928.50 3,955.50
Agriculture 7 294.9 289.2 279.5 277.2 287.6
Forestry, fishing, mining, quarrying, oil and gas 8 9 354.9 326.8 329.6 340.6 332.5
Forestry and logging and support activities for forestry 49.2 48.1 48.2 51.9 47.2
Fishing, hunting and trapping 15.8 14.9 17.2 16.4 16.9
Mining, quarrying, and oil and gas extraction 8 289.9 263.8 264.2 272.3 268.4
Utilities 137 137.2 132.6 144.8 139.1
Construction 1,371.20 1,385.00 1,409.30 1,437.50 1,463.10
Manufacturing 1,712.40 1,694.80 1,724.80 1,728.40 1,733.10
Durables 1,030.10 1,032.90 1,043.00 1,042.50 1,043.30
Non-durables 682.3 661.9 681.8 685.9 689.8
Services-producing sector 10 14,076.20 14,246.90 14,540.50 14,729.10 15,100.20
Wholesale and retail trade 2,732.70 2,745.90 2,809.60 2,794.60 2,841.80
Wholesale trade 666.9 678.1 673.4 656.3 638.1
Retail trade 2,065.80 2,067.80 2,136.20 2,138.30 2,203.70
Transportation and warehousing 917.2 907.4 943.7 990.9 1,037.90
Finance, insurance, real estate, rental and leasing 1,102.90 1,127.00 1,171.30 1,173.90 1,208.40
Finance and insurance 791 808.1 831.4 828.8 847.6
Real estate and rental and leasing 311.9 319 339.9 345.1 360.8
Professional, scientific and technical services 1,365.80 1,393.70 1,448.80 1,466.80 1,555.70
Business, building and other support services 11 760.6 766.4 756.6 777.1 776.3
Educational services 1,274.10 1,270.00 1,285.00 1,325.40 1,370.40
Health care and social assistance 2,292.30 2,339.30 2,383.20 2,406.70 2,489.70
Information, culture and recreation 750.6 782.4 789.3 786.9 774
Accommodation and food services 1,210.60 1,212.70 1,210.80 1,235.00 1,215.70
Other services (except public administration) 761.8 774.9 781.3 802.9 817.4
Public administration 907.4 927.3 961 969 1,012.80
Unclassified industries 12 .. .. .. .. ..

Segmenting by industry makes a lot of sense in this case because some industries clearly do more hiring than others. You decide that Chumber should focus on industries with the highest projected hiring increases in the next decade. Companies in growth industries will definitely get the most value from Chumber. Next, you want to understand more about which decision-makers in these companies will be the best targets for Chumber. Having just come through the hiring process, you know who is interested in reference checking: human resources professionals, job recruiters, and hiring managers. You email Ken, the Chumber HR person who handled your hiring process, to see if he can answer a few questions about how decisions are made in HR departments.

Photograph of a man looking into the camera and smiling. He is standing with relaxed posture and his hands in his pockets.Ken is very helpful. Prior to Chumber, he worked in HR for a health care company and a consulting firm. He confirms that an HR manager or director of recruiting oversees the reference-checking process for new hires. This person would also be the primary decision-maker for a product like Chumber. Ken explains that the requirements for reference checking differ by industry. In health care, for instance, where people routinely handle life-and-death situations, reference checks are essential and thorough. Ken mentions a couple of features Chumber could add to fit the specific requirements of the health care industry. You take notes about product improvements that could be part of the marketing mix for this segment. When you’re back at your desk, Ken sends you a list of Web sites, publications, and conferences where many HR recruiters go for professional information. This will be really useful when your boss wants to talk about promotion and place! You invite Ken out for lunch to thank him for his valuable input. You still have a lot to learn about Chumber and product marketing. But applying your knowledge about segmentation and targeting is giving you a good feel for how you might help the company succeed.


  1. Statistics Canada. (2020). Table 14-10-0023-01 Labour force characteristics by industry, annual (x 1,000) DOI: https://doi.org/10.25318/1410002301-eng

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