--- title: "Marketing: The Art of Division and Combination" description: "A company president pours out all his marketing management problems, which are then categorized and solved using the principles of 'division' and 'combination'. The article explains how these concepts apply to market segmentation, product classification, and site selection, using KFC's location strategy as an example." author: "喻国庆" publisher: "New Distribution" email: "zhaobo258@gmail.com" telephone: "+8615854817671" published: "2014-09-08" language: "en" canonical: "https://xinjignxiao.com/en/articles/marketing-the-art-of-division-and-combination-af8581da/" markdown: "https://xinjignxiao.com/en/articles/marketing-the-art-of-division-and-combination-af8581da.md" original_source: "https://mp.weixin.qq.com/s/4KHA9-Yv-Vs2kVwcFGHMhw" translation: "https://xinjignxiao.com/zh/articles/%E8%90%A5%E9%94%80-%E5%88%86%E4%B8%8E%E5%90%88%E7%9A%84%E8%89%BA%E6%9C%AF-af8581da.md" attribution: "New Distribution — https://xinjignxiao.com/en/articles/marketing-the-art-of-division-and-combination-af8581da/" usage_policy: "https://xinjignxiao.com/ai-policy.txt" --- # Marketing: The Art of Division and Combination > A company president pours out all his marketing management problems, which are then categorized and solved using the principles of 'division' and 'combination'. The article explains how these concepts apply to market segmentation, product classification, and site selection, using KFC's location strategy as an example. **Warm Tip: Click the '↑' above to follow 'FMCG Distributor Professional Consulting' for more insights on marketing and distributor internal management.** Because of new market expansion, I had the opportunity to meet with the president of a trading company. To help solve market challenges, I looked into their marketing situation. Unexpectedly, the president talked endlessly, like a floodgate opening, pouring out all the problems in marketing management, leaving me dizzy. Due to professional ethics, I had to stay composed and listen patiently, while having my assistant record everything the president said verbatim. After returning, I categorized all the issues into modules such as product, channel, brand, team, and management, and interpreted them one by one, finally gaining clarity. I then provided recommendations, and the problems were resolved. The main method used to crack these problems was 'division' and 'combination'. Marketing, to some extent, is the art of 'division' and 'combination'. Let's first talk about 'division'. Because China is vast with a large population and regional differences, if we divide sales territories by administrative levels, we have municipalities, provincial capitals, prefecture-level cities, counties, and townships. If divided by economic development, we have first-tier cities, second-tier cities, and townships. For market research, different regions must be treated differently; otherwise, conclusions cannot be correct. However, many enterprises do not strictly divide markets by administrative regions or economic development but rather by their performance in the market, categorizing them as base markets, model markets, niche markets, as well as development markets and growth markets. The 'division' method can be applied not only to market type classification but also to product classification. Products can be divided by industry or company conventions, or by channel. If divided by channel, they can be profit products, volume products, or brand products. If divided by price, they can be high-end, mid-range, or low-end products. Let's consider whether other marketing modules can also be divided this way. Products, terminal types, consumer groups, distributor levels, etc., can all be divided. The purpose of 'division' is mainly to avoid trying to grasp everything at once. In the era of extensive market economy and scarce product resources, it was a seller's market, and market control was easier. But in today's fierce competition, companies are competing for resources. In such a situation, 'division' helps clarify thinking, operate precisely, utilize resources rationally, and improve efficiency. However,一味地'分' also has drawbacks. 'Division' implies 'dispersion', which can lead to chaos and affect efficiency. Therefore, 'division' must be combined with 'combination'. For example, after using 'division' for products, we must also achieve 'combination', that is, product-channel fit. Many products don't sell because the channel and product are mismatched: high-end products enter low-end channels, or products with broad consumer appeal enter narrow channels. These are problems in the 'combination' method. In logic, there is induction. Inductive argument is a method from the particular to the general. It collects many individual cases or sub-arguments, then induces their common characteristics to reach a general conclusion. Induction is reasoning from individual knowledge to general knowledge, from known true premises to possibly true conclusions. It attributes characteristics or relations to types based on limited observations of particular representatives, or formulates laws based on limited observations of recurring patterns. Induction embodies the concept of 'combination'. Chinese people value 'unity of heaven and man, and following nature', and 'timeliness, geographical advantage, and harmony'. These concepts of 'combination' are full of wisdom. Marketing also needs this wisdom of 'combination'. So, should other marketing modules also achieve 'combination'? Obviously yes: culture with team, region with strategy, promotion with season, brand with investment; marketing methods with industry characteristics, talent recruitment with company scale, change with opportunity, etc. Let's use KFC's site selection secret as an example to illustrate the application of 'division' and 'combination' in marketing. In the marketing chain, the terminal is the final step of sales. Store location becomes crucial. The products sold must match the business district and the surrounding consumer group. The core secret of KFC and McDonald's store opening is: 'Location, location, and location.' What 'division' and 'combination' are involved in location selection? KFC's site selection follows these steps. **1. Division and Selection of Business Districts** **1.1 Dividing Business Districts** When KFC plans to enter a city, it first collects data on the area through relevant departments or professional research firms. Some data is available, some needs to be purchased. Once all data is gathered, they start planning business districts. Business district planning uses a scoring method. For example, if the area has a large shopping mall with annual sales of 10 million yuan, it scores 1 point; 50 million yuan scores 5 points. A bus line adds points, a subway line adds points. These scoring standards are accurate empirical values averaged over many years. Through scoring, business districts are divided into several categories. In Beijing, for example, there are municipal commercial types (Xidan, Wangfujing, etc.), district commercial types, targeted (destination) consumption types, community types, tourism types, etc. **1.2 Selecting Business Districts** This determines which business districts to focus on for store opening and the main targets. In the criteria for business district selection, on one hand, consider the restaurant's own market positioning; on the other hand, consider the stability and maturity of the business district. Different market positioning attracts different customer groups, so the choice of business district also differs. KFC and McDonald's have similar market positioning, and their customer groups basically overlap, so their business district choices are also the same. You can see that on the same street, one side has McDonald's and the other KFC. The maturity and stability of the business district are also very important. For example, if the planning bureau says a road will be opened and a location designated, it might become a mature business district in the future, but KFC must wait until the business district is mature and stable before entering. For instance, if a store will be profitable in three years, that doesn't help now; would they suffer losses for three years? KFC invests several million yuan in a store, so they certainly won't take such risks. They follow a prudent principle, ensuring that each store opened is successful. **2. Measurement and Selection of Customer Gathering Points** **2.1 Determine the main customer gathering point within the business district.** For example, Huaihai Road in Shanghai is a mature business district, but not every location on Huaihai Road is a gathering point; there must be a primary location where customers gather. KFC's principle is to strive to open stores at or near the most customer-gathering locations. An old saying goes, 'A step difference leads to three-tenths difference in business.' A store's location being one step off can result in a 30% difference in business, which is related to pedestrian flow lines (the routes people take). Maybe people walk to a point and turn, so that place is unreachable for customers. A few steps can make a big difference in business, and these factors must be considered in site selection. What are the pedestrian flow lines? In this area, after people exit the subway, which direction do they go? They send people to time and measure, and only after having a complete set of data can they determine the location. **2.2 When selecting a site, consider whether competitors might intercept the main pedestrian flow.** For example, if there is a KFC on the roadside of a community, and the main pedestrian flow goes from east to west. If a competitor opens a Western fast-food restaurant 100 meters to the west, it would be inappropriate because the main flow comes from the east. If they open to the west, KFC would intercept a large portion of the flow, and their business would not be good. From this example, we can see that in dividing business districts, the 'division' method is used more, while in determining customer gathering points, the 'combination' method is used more. Marketing must not only be scientific but also artistic. 'Division' and 'combination' also require some artistry, meaning they cannot be applied mechanically. Because different enterprises vary greatly, marketing cannot copy other companies' methods but must consider the actual situation of the enterprise and the degree of control. Also, because marketing success involves environment, team, resources, culture, and other factors, the artistry of 'division' and 'combination' becomes even more important. Problems cannot be mechanically cut. Solving marketing problems requires systematic, scientific approaches, with attention to rhythm, sequence, and timing. Only then is it correct 'division' and 'combination'. --- **Like this article? Feel free to click the top-right corner to share to your circle of friends.** **About us:** WeChat ID: FMCG Distributor Professional Consulting Management Account Introduction: 20 years of FMCG distributor operation and management experience, professionally targeting distributor internal management: We understand distributors better than manufacturers, and we understand internal management better than distributors. Senior marketing experts help your business grow. Click the 'Read Original' below to enter our micro-community for interactive communication and questions. **Learning and exchange QQ group: 344257092** **Reply 1 to enter the micro-official website to view historical messages.** --- --- ## Copyright and AI use This article is sourced from New Distribution. 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