What is market segmentation?
Market segmentation is a process of dividing the customer base into groups that have similar needs and motivators. With clear segmentation and understanding of key decision drivers for each segment, a business can decide how best to allocate its scarce resources towards growing revenue and penetration for its products.
Why do market segmentation?
If your business is entering new areas, launching a new product, has lost knowledge, is coming out of a turn around or looking to improve targeting of customers to increase penetration and revenue. This process will give you the support you need.
Who would benefit from doing the market segmentation process?
Any business that needs an in depth investigation into a market and its customers, to better understand how to grow business in that area. This framework will give you the answers you need. Typically used by businesses launching new products, entering a new market, seeking better penetration of an existing market or to improve their competitive situation by better understanding the customer base.
How long does it take?
This framework is the biggest process that we do and takes between 4 – 6 months to complete. Extra resources can reduce the time frame, though the product is time hungry.
What is included?
The outputs from the process include:
- Market overview
- Market shares
- Market trends
- Mega segments
- Micro segments
- Focus segments
- Personification of key players in sub segments
- Preferred selling solutions by segment
- Growth levers by segment
What is the process?
We start the process with a scoping discussion and a written scope document. Prior to starting the job we provide a letter of engagement, setting out the terms of the engagement. You will need to sign this document on behalf of your business and return it to Competitive Insights. Putting the document together requires access to internal financials and documents. In addition we will need to interview a small number of people who hold key positions in the business as well as doing work in market. We update with the key contact or group on a weekly basis and are available for discussion on completion of the document.
What do you get?
The output from this process is a PDF document that is suitable for electronic sharing or printing. In addition to the document there are weekly progress/debrief sessions during the engagement as well as presentation/discussion when the final document is delivered.
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