Identify, Size, and Segment New Markets
In today’s environment, customers typically have multiple choices to meet their needs. Therefore, business success often boils down to effective market identification, sizing, and segmentation.
First things first. Assessing a market opportunity begins by identifying the market size and focus for your product or service. The next step is to quantify and segment the market.
Segmentation is the process of clustering prospective and current customers into different groups so that each group is comprised of individuals that share a similar level of interest in the same or comparable set of needs. Segmentation matters if you want to tailor your offer (product, channel, price, and communication) more precisely to different groups based on their needs, and use segmentation to understand the economic value and economic potential of each group. It is one of the most basic responsibilities of marketing. It is marketing’s job to match a distinct value proposition with a unique segment.
Once you complete these first two steps you can select and prioritize the customers that will accelerate your revenue generation efforts.
We enjoy helping businesses of all sizes assess and nail their market opportunities and segments. Here are some key questions you may be looking to answer:
- Which market segments have unmet needs we could meet?
- Which customer segments offer the highest revenue and profit potential?
- How should we position our products or services in order to reach target segments?
- How can we communicate with target segments?
- Which segments would give us the highest ROI for our marketing investment?
- Which new products should we develop?
- What customer segments exist in our customer base, which ones are profitable and how do we retain these customers?
If this sounds like you, contact us about our MarketSmart™ Segmentation Methodology or using our patent-pending Avantage® market opportunity and segmentation tool. Or you can make it fast and fun with the Market Segmentation Lab.