BP: segmentation & targeting

What are the customer segments in your market? How big is each segment?  Which ones are targets for your company?  What are their needs and what are the key communications messages that will appeal to them?

Segmentation analysis is a multivariate analysis technique that identifies groups of people with similar attitudes to a range of issues.  In a typical study, focus groups are used to develop a list of statements that cover the attitudes that affect how people make decisions regarding the product/service category.  These may cover issues such as quality, price, brand reputation, convenience, etc. The statements are then rated in the quantitative phase of the project.  Analysis is done by a multivariate technique known as cluster analysis.


The goals of a segmentation study are to:

  • Identify the customer segments and their size (i.e. percentage share of each segment)
  • Identify which segments to target (based on the best fit between the segment’s needs and the strengths of the product/service)
  • Identify product/service development requirements (if any) and appropriate communications messages for the chosen segments