Changing Game with Market Fragmentation

No to “DASHBOARD”, Yes to “DATA”

While data are important to modern marketing, they can’t be used just for simple dashboards. Marketers need to look beyond whether they are selling well or whether customers like their offers.

In the age of market fragmentation, “customer insights” are key.

“For instance, on Instagram, a customer might be a ‘foodie’ who constantly seeks out fantastic dishes to show off to friends. However, when that exact same person switches to Facebook, they may only be interested in sharing academic knowledge. So, what type of person are your customers exactly? The answer is that both these versions are their genuine selves,” Asst. Prof. Dr. Ake says.

This presents a major challenge because it requires marketers to understand the different lifestyles connected to each platform. When people engage in various digital spaces, their passions may be presented differently.

Marketers, therefore, must realize that data gathered from one platform can’t be used to definitively predict or judge the behavior of that same customer on another platform.

Such complexity goes beyond what even capable professionals can manage alone. That is why marketers must leverage artificial intelligence (AI) to analyze big data from various platforms for accurate insights.

Go for “MEANINGFUL”, Not “MICRO”

Many brands think a niche market is unprofitable.

Their belief is not entirely accurate, because marketing focused on a very small group of customers can be successful. With “meaningful marketing”, there are customers who are willing to pay more and prove more loyal.

Clear examples can be found in world-class brands like Ferrari. Several luxury watch brands also generate massive income even though their production volumes are so small.

Another great example is SCG’s Excella roof tiles. Made from genuine ceramic and fired through an exceptionally high-quality kiln process, Excella delivers rich, fade-resistant color. It therefore provides more than just a roof—it preserves the beauty of the home people cherish. Excella stands as a prime example of a product that successfully captures a small yet deeply engaged market.

“Its marketing goes beyond selling a roof for sun and rain protection. It is about offering a finely crafted product for homeowners who value their home’s image and tasteful architectural design,” Asst. Prof. Dr. Ake explains.

One Core, Many Expressions

If the market becomes fragmented, what should brands do?

“Core must be one, but expression can be many,” Asst. Prof. Dr. Ake

points out. These many expressions are compared to the various business units and diverse products under SCGP’s umbrella.

The core of SCGP is its positioning as the partner, which is reinforced through various forms and products. Idea Green offers paper that is gentle on the eyes, while Fest’s food-grade packaging offers quality of life through its high safety standards.

When brands successfully uphold their “core,” they can expand boundlessly. To keep the core intact, brands must not engage in “things that do not align with their identity.” No matter how interesting those things seem, they need to stand their ground.

No Longer Segments, but Fragments— Down to the Finest Sub-fragments

In the near future, the market will become increasingly fragmented to the point of sub-fragmentation. Marketing approaches that rely on gut feelings, past experiences, or broad generalizations will then become ineffective.

Marketers thus must transform into marketing data scientists, because their jobs will require constant data analytics for a chance to tap into new markets.

In the age of market fragmentation, fear not the niche. Fear the unclear. If we use new tools while upholding our core and principles, market fragmentation can be our empowering opportunity.