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Market segmentation recognizes
that most companies have limited resources,
and therefore need to explicitly identify and
deliver on target-specific requirements.
Quantifying a customer segmentation
framework gives companies a clear understanding
of the most attractive market segments, including
their size, profitability, and growth potential.
From this, resources can be better aligned to
meet customer needs, both today and in the future.
Key issues addressed:
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What is
the overall segmentation framework for the
category? On what basis --
attitudes, behaviors, or demographics --
do customer groups align? |
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Which are
the most attractive targets for the brand,
in terms of market size, profitability,
brand-fit and long-term attractiveness? |
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What drives
purchase and decision making? What attributes
and benefits are most important to the selected
target customer? |
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Should
current offerings be realigned or new offerings
introduced to better meet the needs of the
target? |
Approach and anticipated
results:
A situation assessment is
performed, including management interviews and
a review of prior research and plans. In-depth
exploratory research follows, to identify the
full set of perceptions, opinions, beliefs and
attitudes regarding the category. An in-depth
questionnaire is then developed and fielded,
with statistical analysis used to determine
the optimal segmentation solution as a key input
to strategic decision making.
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