segmentation and strategySegmentation and Strategy

There are different methods of segmenting the market, depending on what a client is looking to achieve.  For instance, a go-to-market segmentation for a new internet-based product may be completely different than the market segmentation for legacy product groups in the business. The first might be, for instance, by customer size while the second might be, for instance, by customer geography.

Our approach to segmentation starts with carefully determining the underlying goal.  Once we have established this purpose, we use a blend of analytics and market research to develop the right segmentation.

With the right segmentation in place, the appropriate strategy follows suit.

Examples areas of our segmentation expertise include:

  • Go-to-market / new products: an appropriate go-to-market segmentation considers how perceived value for the core product will differ across various segments of the market, incorporating penetration and growth targets for the new product.
  • Pricing: an appropriate pricing segmentation should be based on the product/service elements in the offering (e.g., expedited orders, special packaging, extended terms, etc.) and equally important, the customer’s buying situation (e.g., orders placed with a one-week lead time fall into a different buying situation than orders placed with a one-day lead time).
  • Financial: financial segmentations could consider customer credit-worthiness, customer profitability, standard “accepted” terms of sale by region, etc.
  • Marketing / growth strategy:  Rapid growth might involve cash or time investment in specific areas of the business; working from the market-in, we work to identify a segmentation that reflects the highest areas of growth potential.