Phase 1: Market Segment Definition
For each market, define the attractive segments that have common problems that your company can uniquely address.
You don’t know which segments to target with your products. You don’t have the product resources to address every problem in every market. If you create a product for the wrong markets, you’ll fail.
The most attractive markets are those with problems that you can uniquely solve, occur frequently, have pain associated with them, and have budget available to address them. In addition, the markets must be large enough to justify your product investments.
- Market segment definitions
- Market attractiveness criteria
- Market adjacency identification
- Market share
- Total available market
- Market problem analysis (frequency, pain, willingness to fix)
- Product win strategy
With market segmentation complete, the next step is Phase 2: Product Portfolio.