Segmentation is the process of breaking up a market into groups based on shared wants and needs. It is a highly misunderstood marketing topic, and many companies use classification systems rather than properly segmenting. Segmenting on benefits allows companies to see where they may have a distinct advantage, and can help them better understand the competitive landscape.
Data can be collected and clustered in order to segment, and visual representations of the segmentation can be used to show where competitors are targeting. Once segmented, companies can then assess their own core competencies and strengths to see how they compare to the benefits the market cares about.
Segmentation is essential to understanding a competitive market, and can help a company find a way out of a very competitive market. If you need assistance, our team is here to help. Get in touch and see how we can help you to segment your market.
Market Segmentation: Where Companies Go Wrong and Why You Need Differential Advantage Analysis
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