Phase 1: Market Segmentation
Market segmentation helps you divide the broad target market into subsets of buyers who have common needs, priorities, and solution options.
Not all markets are created equal.
Determining which markets to address with which products through which channels can be difficult. You begin to understand why when you multiply your customers’ diverse needs by the many products and channels available to reach them.
If you pursue markets that are too wide, your aim is off target. Without a clear understanding of market segments, limited company resources get misallocated. And revenue goals are missed. Broad markets need to be divided into subsets of buyers who have common needs and priorities.
- Total available market
- Market growth rate
- Competitor analysis
- Strategic market group assessment
- Product/market mix assessment
- Sales and marketing SWOT
- Product/sales lifecycle assessment
When we finish this portion of your marketing research, we move onto Phase 2: Account Segmentation.