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.
 A
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. |
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