Market Segmentation: How to Do It and How to Profit from It, Revised and updated 4th Edition

Chapter 3

Fast tracking through the segmentation process

Introduction

We have diligently put together what we term ‘fast tracks’ for each of the steps in the market segmentation process. These include the main learning and action points for each step.

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Definition:

Market segmentation is the process of splitting customers, or potential customers, in a market into different groups, or segments, within which customers share a similar level of interest in the same, or comparable, set of needs satisfied by a distinct marketing proposition.

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The fast tracks therefore give you the essentials of what you need in order to complete your segmentation project. Please be aware, however, that you will almost certainly have to refer to the appropriate chapter for each step from time to time if you are to achieve the best results for your project.

The principal purpose of the fast tracks is to provide those of you new to the segmentation process with a concise guide to what it entails. For those of you familiar with the process as presented in this book, the principal purpose of the fast tracks is to provide you with all the memory prompts you require for a segmentation project.

Process structure

The segmentation process consists of two phases:

Phase 1 Developing segments

Phase 2 Prioritizing and selecting segments

The first phase contains three stages, broken down into five steps:

Stage 1 Your market and how it works

Step 1 – Defining the market