Overview of Our Approach to Market Segmentation

Posted by  Derek Jones

POSTED ON  June 10, 2021

CATEGORIES  Learn

Over many years, we have refined a sophisticated approach to undertaking exploratory segmentation for our clients.

1. Hypothetical segmentation

Qualitatively derived hypotheses about possible segments.

2. Define segmentation ingredients

Define a set of ingredient metrics to include in the quantitative survey based on attitudes, behaviours and psychometrics, for example.

3. Ingredient quantification

Collect data on a set of ingredient metrics using a large and representative sample.

4. Explore solutions

Explore possible solutions using different ingredients and cluster techniques.

5. Finalise solution options

Reduce number of solutions down to finalists – usually 2 to 3 solution options – and name segments using “Who Am I?” team game.

6. Validate segments against qualitative research

Sense check solutions back to qualitative stage to choose best option – “can we see these people?”

7. Finalise solutions

Choose best option based on their size, validity, marketing relevance and mathematical robustness.

8. Size and profile solutions

Size and profile the solutions and create segment “postcards” – what defines them and who are they?

9. Bring solutions to life

Recruit 2–3 respondents per segment to create video profiles to further bring alive.

To read about these steps in more detail, download our FREE printable Market Segmentation Guide by completing the form below!

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