1.1 Processes & Parameters to Identify Target Markets
Step 1: Segmentation
We begin by generating options across all prospective customer groups that can be served based on their common needs and attributes. We use the vast amount of data collected from Customer Analysis stage for this.
First, we identify viable segments based on whether they are:
- Unique: whether customers within a segment are similar but different across segments
- Identifiable: whether attributes exist to describe & identify customers of this segment
- Accessible: whether customers are accessible for distribution and communication
- Sizable: whether enough customers exist to justify targeting the segment profitably
- Stable: whether segment is stable enough to serve over a long period of time
Next, we employ multiple Segmentation schemes:
- Geographic: based on region, country/market, HQ location, etc.
- Demographics: industry, company size, # employees/customers, public/private etc
- Psychographics: corporate culture, management type, values, mission/vision, etc
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