Silicon Strategies Marketing - Market segmentation for high tech products and services   Silicon Strategies Marketing - Marketing Consultancy for the High Tech Industry        
 

"You have to know it before you can grow it."
Scott Bedbury, brand manager for both Nike and Starbucks

Objective: Identify sub-markets that are quickly dominated, and from which you can grow.

Benefits: Fast revenue stream, create barriers to competition, establish corporate and product credibility in the market.

Silicon Strategies Role: Identifies best segmentation models, then prioritizes segments for exploitation.

Market segmentation is the science of dividing a large market into small, manageable pieces that can be prioritized and dominated.

This basic concept is critical. Most markets are so large that it is financial suicide selling to the entire market at once. Rare is the product that meets all needs of all buyers in a market. Segmenting allows companies to dominate one part of the market, and from that firm foothold, to dominate new segments.

There are many ways to segment a market, often requiring matrix models in order to find the most profitable segmentsA segment is a group of customers that share common needs, desires, motivations and buying patterns. Buyers in a  particular segment communicate with one another and require peer-to-peer references before buying. Careful market segmentation creates self-referencing "sub-markets" that are prioritized and conquered in order.

Failure to segment your market is often fatal. Imagine selling one copy of your product to one person in each country. How would these individuals reference other people in their country? Only a handful of individuals in each country would be influenced by their neighbors. Geography, language, and common communications would prevent explosive exposure of your product.

Likewise, the product demanded in each segment is different, with different features and benefits. By initially focusing on only one or two segments, you complete a whole product for those segments, and create compelling reasons to buy. Then, and only then, will your products experience explosive market growth.

The science of segmentation requires examining all possible segmentation models and selecting the one that meets several specific criteria. Silicon Strategies Marketing structures segmentation exercises and guides your management team through the decision processes leading to cleanly defined market segments. The steps in our process include the following:

  • Review segmentation and why it is important
  • Review the goals for the segmentation process
  • Brainstorm all possible segmentation models
  • Review associated corporate or product objectives
  • Review each segmentation model against six essential criteria
  • Select a segmentation model after filtering those that are not viable
  • List how prospects would be identified and approached
  • Compare the selected segmentation model to product life-cycle criteria
  • List the expected segments within the model
  • Confirm that segments are self-referencing and addressable
  • Prioritize the segments for market dominance

Contact Silicon Strategies Marketing for a telephone consultation about how to divide and conquer your markets.

SSM White Paper

Zen Segmenting - Accelerating Market Dominance

Learn how to think differently about segmenting models.

SSM White Paper

Segmenting for Assault - Claiming an  Established Market

Segmenting is essential when trying to take market share away from established competitors.

 

 

 

 
 
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