In my last post my good friends hailing from the marketing "camp" of business rightly defended some aspects of marketing, so guys, sharpen your pencils while I naively do some market segmentation on behalf of SAP no less:
When at Sapphire we heard much about the SME products - A1S, B1, All-in-one - and almost every presentation included some segmentation of the market:
Small, medium, large.
Upper mid, lower mid, small.
I was almost waiting for lower, lower, mid upper SME market...
Way back in August 05 I did a post on my very own market segmentation, so allow me to suggest an add on to SAP's...
...size segmentation pyramid:
The attitude upside-down segmentation pyramid:
Basically, here I give a hoot about size, or even thinking "firm". Only individuals in corporations. Theoretically OK unless your acquisition costs per customer is high, then of course many seats per customer is important.
My question would be, why should not acquisition cost per customer be the same for small and large? (Not talking implementation cost here, that's a variable and billable.)
You talk to one person. You lunch with one purchaser. You present for one or more, same Powerpoint. Why the difference? It's all about people and a person is singular, always.
And definitely so if you switch from push to pull, then there is no acquisition cost difference.
What now if the market, i.e. the people influencing new software installs, are drifting towards the more radical and risk willing attitude; wanting more flexibility and the possibility to stick their heads out trying new ways and differentiate themselves and their firm.
If that's only partly right the segmentation along the lines of "attitude" would trash the "size" segmentation. The latter only relevant for "acquisition cost" purposes, and not for "influence" issues.
I would obviously not suggest SAP ditching their current core market or go-to-market strategies, I would rather suggest they have a huge opportunity to increase their market through "targeting" (hear that guys?) the not-so-conservative population of business world wide with new very different products.
Not only tweaking the good-old for smaller buyers but actually do something crazy and radical on the side.
Coupled with "pull" (market-come instead of go-to-market) of course, keeping acquisition costs equal for big and small.
I'll bet that they even will find not-so-conservative influencers in very large organisations. I have met many of them, they're there, believe me. Go get'em now, even some large companies uses non-SAP products!
After all, the car industry knows well that a family of five might not only end up with a boring minivan. Dad might want a Porsche too... and one day he'll buy one if possible!