Market Segmentation Studies

Summary Description

Except for companies selling only to very narrow vertical product markets, a company’s market is composed of several segments of users, as defined by any number of factors, including industry type and company size, purchase and usage behavior, and demographic, psychographic and sociographic factors. In order for a company to target their products and communications messages, and thus maintain competitive advantages, it needs to have an in-depth understanding of how the market purchases and uses their types of products and be able to breakdown the overall market into buyer- and user-type groupings. By segmenting the market, a company can target product offerings and communications strategies to the appropriate segments for greater overall effect.

Methodology

1. Conduct qualitative research to gain a general understanding of purchase and usage behavior.
2. Conduct quantitative research to determine purchase and usage patterns by segment.
3. Conduct cluster analysis to segment the market.

Questions Answered

1. What is the purchase process for the product market, by user segment?
2. How do users work with these products, by user segment?
3. What can be done to increase the likelihood of purchase, by market segment?
   • Specific product features/attributes?
   • Pricing?
   • New distribution channels?
4. How can usage be increased within segments?
5. What are the types of things they would like to be able to do with these products?
6. What is the likelihood of the purchase of our product and competitive products by non-customers, by market segment?
7. How are competitors' customers using competitive products, by user segment?

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