How to develop a market segmentation

A powerful market segmentation is one that is developed through collaborative effort between insight, strategic thinking and operational application.

It does not have to be a convoluted process that feels and sounds good in theory, but is too complicated to effect and action strategically and operationally.

Simple
  • A simple model of how the market works.
  • Simple to understand (visually); simple to use (functionally).
Strategic
  • Helps us identify tangible growth opportunities around which we can optimise our marketing efforts.
  • Helps us identify met and unmet market needs, and uncovers market growth priorities.
  • Focuses on cuerrent market reality but also considers how the category and current habits are likely to develop in future.
  • Considers core business competencies, enables us to optimise our brand assets and help set our innovation agenda.
Useful
  • More than an informative view of the market.
  • A model that organises the market in a way that helps us to practically address it.
  • Helps us understand purchase and usage decision drivers.
  • Built around factors that are relevant to how decisions are made in a given category
  • Provides actionable insight that brings segments to life in a way that highlights practical brand opportunities

Jason Curtis, November 23, 2015