Market Segmentation

Step-by-Step Guide

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.

market segmentation step by step

Let D&M Research create a unique market segmentation to suit your category and brand.

For a detailed guide to the approaches and techniques used in market segmentation, download our printable Market Segmentation Guide.

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