Blog Layout
Audience segmentation: The art of relevance in marketing
Chasefive Management
At the heart of any marketing strategy lies segmentation. Segmentation is best defined as the process of grouping prospective customers into segments, each with common needs and similar responses to marketing actions.
Despite our belief in our uniqueness, we all belong to one or more segments, and these segments may be based on a perception of how we view ourselves as consumers that isn't necessarily rooted in reality, the way we often align ourselves with specific trends or fashions reflect who we aspire to be rather than our actual habits.
Effective segmentation to achieve public and personal relevance
Businesses of all sizes should define their key target audience segments in their Frame marketing planning stages and detail the most effective communication approach for each segment group.
Above all, segmentation is an exercise in ensuring relevance and there are two levels of relevance in segmentation: achieving public and personal relevance.
Public relevance centers on the core promise of presenting the brand as a 'relevant' contributor to the public discourse for the target audience. This is where the brand can be seen as a champion of beliefs and values shared by the audience segment.
Personal relevance involves communicating in a language and tone that resonates with the audience, as well as delivering on the brand's core promise, specifically for the audience segment. This kind of relevance is what sales professionals often refer to as the sales proposition when preparing their presentations or pitches.
Prioritizing customer needs in segmentation
Most readers are likely familiar with common audience segmentation techniques, such as demographic, psychographic, firmographic, or behavioral segmentation. Many other segmentation definitions fall into one of these four categories, as they are either sub-segmentation practices or synonyms. For example, 'lifecycle segmentation' is a form of demographic segmentation. Segmentation is fundamentally about comprehending the audience's needs, drivers, and aspirations. The importance of good segmentation for businesses and their customers is evident everywhere. Established companies can start by understanding their existing customers' behaviors and create profiles to identify target audience groups.
No matter the technique, the approach must prioritizes customers, not products, at the heart of the marketing strategy, reflecting a genuinely customer-centric perspective.
When developing a strategy for audience segmentation, it is important to keep in mind the fundamental principles of segmentation. These principles include:
• Self-identified segment groups: users should be able to recognize themselves with segmentation logic
• Shared interests: Users within each group should primarily share motivators and needs.
• Distinct differences: Segment groups must be sufficiently distinct from each other to enable clear messaging and prevent overlap.
If you want to develop your audience segmentation, the FAPI Marketing Framework™ can be a valuable tool for your organization's marketing strategy learn more at www.chasefive.com
The FAPI Marketing Framework focuses on a system-based approach to marketing, with the Insights Module playing a vital role. This module utilizes data analysis and feedback to drive continuous improvement throughout the entire marketing system. 1. Focus on the Insights Module The FAPI Marketing Framework utilizes data and analysis to drive an iterative process of continual improvement in marketing strategies. The insights gleaned from audience data inform decision-making, emphasizing the importance of understanding both the 'what' and the 'why' behind observed trends. 2. Understanding Audience Behavior Audience-focused analysis is a fundamental aspect of the Insights Module. The FAPI Framework encourages marketers to explore audience behavior , preferences, and needs in depth. This approach aligns with traditional audience research but enhances it by making the understanding of the audience a real-time, evolving process rather than a one-time effort.
Chasefive Wins "Most Innovative Marketing Management Consultancy 2025"
In today’s competitive business landscape, the FAPI Marketing Framework offers significant advantages to marketing departments by providing a systems-based marketing approach to problem-solving. Instead of focusing solely on immediate challenges, this framework encourages marketers to understand how all components interact to form a cohesive whole. The FAPI Marketing Framework is designed to guide business and marketing leaders in organizing and building high-performing marketing functions. Grounded in systems thinking principles, the FAPI Marketing Framework emphasizes addressing structural elements for sustained marketing success. This article explores how the FAPI Marketing Framework embodies systems thinking, offering a holistic approach to marketing strategy and execution. Core Principles of FAPI as a Systems Thinking Methodology Comprehensive, End-to-End Structure: The FAPI Framework provides a comprehensive structure covering all aspects of the marketing process, from planning to execution and analysis. This coherent approach ensures a seamless marketing experience for customers by connecting each phase of the marketing process. Emphasis on Interdependencies: The Framework recognizes marketing as an interconnected system. The components within the four Modules of the FAPI Marketing Framework are intricately linked, forming a system of interdependencies. Each component plays a crucial role in the overall effectiveness and success of the marketing strategy. Iterative and Adaptive Nature: The FAPI Marketing Framework diagram visually demonstrates the iterative nature of the marketing process, emphasizing continuous learning, adaptation, and optimization. This cyclical process ensures that the marketing strategy and execution are continually adapted to changing market conditions and evolving customer needs. Holistic View: The FAPI Marketing Framework takes a holistic view, addressing the complexities of marketing organizations by considering them as parts of a larger system rather than in isolation. This approach is ideally suited for navigating the complex web of factors in modern marketing. FAPI Marketing Modules as a System The FAPI Marketing Framework is composed of four sequential Modules: Frame, Architecture, Production, and Insights. Each Module empowers marketing professionals and business leaders to fully realize their department's potential and achieve optimal results. The sequential nature of these Modules ensures a comprehensive and well-rounded marketing management structure. Frame Module: Sets the strategic direction and vision for the marketing plan. It acts like an ‘auditʼ to ensure all strategic components are covered, agreed upon, and understood. Architecture Module: Translates the Strategy Brief from the Frame Module into a detailed operational plan, defining marketing channels, performance metrics, and content requirements. Production Module: Focuses on executing the marketing plan. Activities here translate strategy and planning into tangible actions that engage the target audience. Insights Module: Ensures continuous improvement through data analysis and feedback. It ensures that data and analysis lead to informed decisions that optimize future marketing efforts, making the process continuous and iterative. Key Roles and Responsibilities within the FAPI Marketing System The FAPI Marketing Framework assigns clear roles to ensure successful implementation. The Plan Master acts as the central figure, leading the project and overseeing the entire Framework execution. Supporting the Plan Master are the Functional Leads and Production Executives. The Leadership Team provides high-level guidance and receives updates on project progress and ROI.
Marketing departments worldwide allocate their budgets strategically across three major cost categories: Media (Advertising), Tools (Martech), and Labor (External Resources like Freelancers and Contractors). The latest data, expressed in billions of dollars, provides insight into how businesses prioritize their marketing investments. Marketing Budget Allocation Overview The global marketing spend is distributed as follows: Media (Advertising): $1,088 billion (87%) Tools (Martech Software & Platforms): $121 billion (10%) Labor (Freelancers & Contractors): $45 billion (3%) This breakdown reveals a strong emphasis on paid media as the dominant marketing expenditure, with a notable portion allocated to marketing technology (Martech) tools, while external human resources remain a smaller but significant component of marketing budgets . Key Insights from the Data 1. Media (Advertising) Takes the Lion’s Share (87%) Advertising continues to be the largest cost item, accounting for nearly nine out of every ten dollars spent on marketing. Businesses rely heavily on paid media channels, including: Digital Advertising (Google Ads, Social Media Ads, Display Networks, and Programmatic Buying) Traditional Advertising (TV, Radio, Print, and Outdoor Media) Influencer and Sponsorship Campaigns The sheer dominance of media spend highlights the industry’s dependence on customer acquisition and brand awareness campaigns, fueled by digital transformation and the increasing role of online advertising in global markets. 2. Martech Tools Account for 10% of Spending Marketing technology, or Martech, has emerged as a critical enabler of modern marketing strategies. At $121 billion, Martech spend includes: Customer Relationship Management (CRM) Software Marketing Automation Platforms (e.g., HubSpot, Marketo, Salesforce) SEO, Analytics, and AI-driven Personalization Tools Email and Content Marketing Software The Martech investment reflects the growing need for data-driven decision-making, with companies focusing on automation, personalization, and efficiency in customer engagement. 3. External Labor (Freelancers & Contractors) Remains a Small but Strategic Component (3%) Despite the rise of freelancers, gig workers, and marketing contractors, spending on external labor accounts for just $45 billion globally. This category includes: Freelance Copywriters, Designers, and Developers Performance Marketing Consultants SEO & PPC Specialists Fractional CMOs and External Strategy Advisors Many companies leverage contractors for specialized projects, particularly in content marketing, SEO, and campaign execution, rather than hiring full-time employees. The 3% allocation suggests that while outsourcing is a cost-effective approach, most companies still rely on in-house teams and agency partnerships for execution. Trends Shaping Marketing Spend in 2024 and Beyond 1. Shift Toward Performance-Based Media Spend With advertising accounting for the majority of budgets, there is increasing pressure on ROI-driven ad spending. Companies are moving toward performance marketing strategies , where every dollar spent is measured against direct business impact (leads, conversions, and revenue growth). 2. Martech Investments in AI and Automation As Martech tools continue to evolve with AI and machine learning, companies are prioritizing platforms that streamline workflows, improve targeting, and enhance customer experiences. Expect Martech’s share to grow as businesses seek efficiency through predictive analytics, chatbots, and AI-driven personalization. 3. Growth in Freelance & Fractional Roles While external labor spending remains relatively low, the rise of fractional CMOs, freelance growth marketers, and contract-based specialists is changing how companies approach talent. Businesses are embracing flexible workforce models, particularly for highly specialized skills in digital and performance marketing. How Companies Can Optimize Their Marketing Budgets Given the current spending distribution, marketing leaders must: Ensure media spend is performance-driven, prioritizing ROI and customer acquisition cost (CAC) management. Leverage Martech strategically, investing in automation, AI, and data analytics for efficiency. Balance in-house and outsourced expertise, using freelancers and contractors for specialized, cost-effective execution without unnecessary overhead costs. The marketing landscape is evolving, and agility in budget allocation will define competitive advantage in the years ahead. Would you like a more detailed industry-specific breakdown or recommendations based on company size? 🚀
To understand how AI is likely to affect the organization of marketing functions, it is helpful to briefly review the evolution of marketing teams over time. The pre-2000s was an era of marketing generalists working closely with a limited number of vendors and channels to control end-to-end production. Their main focus was on core marketing direction, communication and branding, with little emphasis on specialized technical skills. The marketing generalist concentrated on executing a unified marketing direction. While this approach created a coherent and streamlined marketing execution, it was not scalable. This may seem like a excessive detour but bear with me as we watch the curve of the marketing generalist unfold.
The FAPI Marketing Framework highlights accountability in marketing, assigning clear responsibilities to various roles and ensuring that marketing efforts align with overall business objectives. The framework promotes a culture of shared responsibility for marketing success by defining key performance indicators (KPIs) relevant to all stakeholders. Here's a breakdown of how accountability is addressed within the FAPI Marketing Framework: 1. Clear Roles and Responsibilities: o Plan Master: The Plan Master is key within the FAPI Marketing Framework, overseeing the implementation of marketing projects. They build a dedicated team, enable effective communication, and coordinate activities to achieve marketing objectives while ensuring alignment with the business's overall goals for a strong return on investment (ROI). o Functional Leads: Functional Leads are vital for cross-functional support, coordinating resources and expertise for effective plans. They collaborate with the Plan Master to develop specific modules and ensure their area aligns with the overall marketing strategy. o Production Executives: Production Executives play a crucial role in executing specific marketing tasks outlined in the plan. They are responsible for ensuring that the work delivered meets high-quality standards and aligns with the overall brand and messaging of the marketing campaign. o Leadership Team: The Leadership Team is essential in guiding the organization by setting strategic direction and ensuring alignment with business goals. They monitor project progress, track milestones, assess marketing effectiveness, and evaluate return on marketing investment (ROMI). The team also provides guidance and makes key decisions during challenges. 2. Defined Deliverables: The FAPI Framework is structured with clear deliverables at each stage, making progress and accountability visible. The Strategy Brief is the deliverable for the Frame Module, outlining the business vision and strategic goals. The Marketing Playbook is the deliverable for the Architecture Module, providing a detailed operational document for execution. In the Production Module, the activities themselves serve as deliverables, and in the Insights Module, reports and recommended actions are the output. These deliverables act as milestones and ensure accountability at each phase of the project. The Insights Module highlights the crucial role of data-driven decision-making in marketing strategies. It advocates for the use of precise metrics to assess marketing performance, allowing for necessary adjustments. 4. Cross-Functional Collaboration: The framework promotes cross-functional teamwork, ensuring that all stakeholders are involved in the marketing process. This includes stakeholders from different departments, who participate and contribute through project events, thus fostering a shared sense of ownership and accountability. By promoting communication and understanding across departments, the FAPI Framework minimizes the potential for misalignment and ensures that marketing efforts contribute to the overall business objectives. 5. Continuous Improvement and Adaptability: The framework values continuous improvement, using feedback loops to learn from successes and failures. This iterative approach encourages teams to adapt their marketing strategies based on performance data, holding them accountable for ongoing optimization and growth. 6. Budgetary Accountability: The FAPI Framework also emphasizes resource stewardship and efficient use of resources. The Plan Master is responsible for overseeing the budget and ensuring a return on marketing investment (ROMI), promoting accountability in financial management. In summary, the FAPI Marketing Framework promotes accountability by establishing clear roles, defining deliverables, emphasizing data-driven decision-making, encouraging cross-functional collaboration, and promoting continuous improvement. This comprehensive approach ensures that all stakeholders are aware of their responsibilities and are held accountable for their contributions to the marketing success of the organization. Use the FAPI Planner to drive accountability and efficiency The FAPI Marketing Planner is a cloud-based tool designed to streamline marketing planning and management by implementing the FAPI Marketing Framework. It offers a user-friendly interface with pre-populated modules and components, enhancing team collaboration and task management. Request a FAPI Planner demo for free
2025 Chasefive Management and FAPI Marketing Framework™© Copyrighted material permission should be obtained prior to any reproduction. All other registered trademarks herein are the property of their respective owners.