People come to museums for different reasons. People go to concerts in order to experience different characteristics and of course people buy products because they are looking for different things. In a way, customers are very different from each other. We cannot generalize the customers of our company. We cannot generalize the visitors of this museum, or the audience that is here in the auditorium listening to the concert. We need to do segmentation. What is segmentation? Segmentation is nothing else but leveraging on these differences. Considering that there are different consumers in a given moment of time in a precise area, we want to exploit these differences and try to give the value proposition that each customer is looking for in a precise way. We already know what customer value proposition is. We already know that customers are looking for something that can satisfy and fulfill their own needs. And we know now that in a given moment of time, customers are different from each other. We need to segment. What is the importance of segmenting in a cultural institution? First of all, segmenting allows the company to decide what the best group of consumers to refer to is. Then the company is also be able to convey a unique message to each of these groups. Then the company is also be able to convey a unique message to each of these groups. Consider an example for a museum. In a particular moment of time you have a family, the mom is a professor of music. so when she comes here to the Museum of Violins, she already knows what the importance of violins is and what the importance of this museum is in terms of promotion of this instrument. Then we have the father in this family that is simply appreciating music. He doesn't know anything about the craftsmanship necessary to build and to create a violin, and he doesn't know anything about the composer or the importance of Stradivari. Then we have the children. They come to a museum with their family and they don't know anything at the beginning when they are very young. These are different segments, different groups of consumers, different groups of visitors that, in this moment of time, are coming to visit the same museum. Here is the importance of segmentation, leveraging on these differences can convey a unique message to a single group of consumers that you're facing in a precise moment. The act of grouping the great amount of consumers and visitors you have in front of you is the act of segmenting. How can you segment your market, your customers? There are typically two ways of realizing this activity. The first one is based on the benefit that the customer is looking for. What is the benefit that the children are looking for while entering the museum? What is the benefit of the professor of music inside the Museum of Violins. And what is the benefit that the father of our hypothetical family is looking for entering here? A segmentation based on the benefit that the customer is looking for in relation to the institution. The second way to segment is based on individual characteristics. This segmentation consists of four different alternatives of collecting information from the market that start from the first step of the demographic segmentation: the basic characteristics of age, sex, race and so on. Then the second one is geo-demographic, the same group of Then the second one is geo-demographic, the same group of demographic characteristics in a precise area and/or geographical zone. Then we have something that is more difficult to obtain, which is the psychographic segmentation, the psychological make up that pertains to the consumer itself. From this third approach we can arrive to the final one that is the most effective way of segmenting the market, which is based on the behavior of the consumer. In a way, basing on the behavior that, in the past, a particular consumer has done, we can predict and assume what is the best way to convey to a given consumer a proper customer value proposition he's looking for. At this point we know the importance of segmenting. Just now take into consideration the example of a museum, a cultural institution. We said that we have many consumers in a given moment of time. We need to create a new offer, a new product that is sold to the market. A new particular way of appreciating the history of the craftsmanship and value in this museum. Of course, we need to refer it to the different segments of consumers that we have in front of us in a different way. If we want to convey the message of the importance of the tradition of a craftsmanship in violins to the segment of the children, we will use a specific way. And the example of the path here in this museum that is reserved for conveying of the message for the experience, the visitor experience of the young people, is a very good example. If we need to speak to somebody that has already an abundant knowledge on music or the history of violins, we have to use different messages. This is something that is quite intuitive. But what is important to do is to use this scientific approach in segmenting the market. So using and leveraging on these differences in order to convey a proper customer value proposition. After the segmentation we arrive to the moment of targeting. We have the group of consumers, because we have already done the different selections based on the geographic, psychographic, demographic, and/or ge-odemographic segmentations. Now as a manager of accounting institution, we need to decide what is the best group of consumers that we need to refer to. Or which is the best way to refer to the single segment of consumers we have in front us. And so we decide what is our target. Our target can be the children for an educational project. We can have as a target the professor of music, like the mom of this hypothetical family, for an important concert, a very niche concert performed here in this auditorium. Or it can be the family as a whole as a target, if we want to organize brunch in a museum for example, connected with the small and very famous concert for a solo violin. So this is the target, but we can talk about the target only after we did the segmentation. Targeting without segmenting doesn't exist. Then we are to the final part, segmentation with divided groups. We leverage on the differences in order to convey a proper customer value proposition. Targeting, we decide which is the best group to refer to or not only the best to refer to, but the best groups to refer to, so different messages for different groups of consumers. Then there is the positioning. Once we have decided that our target is the group of children or the family, typical family that comes to the museum on Sunday. We want to position, so create and convey a message that explains our customer our proposition, our value proposition in order to arrive and be perceived by our target. Segmenting the first step, targeting the second one, third is the positioning.