As markets or categories grow -- increasing in diversity of needs, products, services, and competitors -- these more developed markets have greater numbers of consumers with differing beliefs and behaviors who, consequently, are seeking differentiated offerings.
In response, research supporting a market segmentation strategy provides essential information for strategic planning to focus business building efforts and resources on those in the market who represent the best potential revenue growth.
Segmenting markets is about identifying attractive and actionable groups (segments) of similar buyers who are seeking a similar offering:
- To be considered attractive, a segment must be large enough in size to generate meaningful revenue and also align well with existing or developing company strengths and future growth objectives.
- To be actionable, a segment must be sufficiently differentiated from other segments, stable enough over time to justify business planning, and understood well enough in terms of profiling to be accessible through advertising, marketing, distribution, and other targeting efforts.
Working closely with our clients, StrataMark identifies, validates, and exhaustively profiles the segments developed. Our clients can then readily select, prioritize, and target those segments best aligning with business objectives.
For some examples of our thinking and work in the area of Market Segmentation, please click on the hyperlink below (to view in PDF format):