Market segmentation

Market segmentation is the process of dividing the market into subsets of customers who share common characteristics which enables the creation of targeted products and Go-to-Market (GTM) strategies.

Segmentation and targeting are key steps in the ‘customer to value proposition cascade’.

Develop a segmentation schema based on customer needs and characteristics in your target market, followed by a customer outcomes cascade that helps prioritise customer outcomes to target to most relevant and important ones. Then, develop your target persona profiles and use these when defining your insight-based value proposition.

Demographic, psychographic, behavioural and geographic segmentation are considered the four main types of market segmentation, but there are several other strategies you can use. 

The key is to identify the market according to what they need and want. Do this by analysing their clinical environment, usage patterns and demographic characteristics. Assess the growth potential of your market as well as your competition and the potential risk they may represent to estimate the potential profit of the market segment. Together with the ease of access, this will help you select your target customer segment in your target market.

Consider not only the key buyer persona but also the other members of the decision-making unit.