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EMM Group’s Market

Segmentation Toolkit
February, 2009
EMM Group’s Market Segmentation Process
1 2 3 4
Identify Develop Execute
Objective Customer Segmentation Go-To-Market
Setting Segments Strategy Plan

a. Set segmentation a. Design Research a. Select target a. Identify key


objectives segments stakeholders
b. Collect data b. Develop
b. Identify b. Develop Insights Communication
segmentation c. Analyze data & Plan
variables & identify segments c. Identify c. Operationalize
develop segmentation Go-To-Market
hypothesis d. Validate results implications & Plan
recommendation d. Execute &
s monitor

T • Objectives & Plan • Research RFP • Target Segment • Segmentation


O Template Template Selection Criteria Communication
O • Market Definition Tool • Research Vendor • Hierarchy of Needs Framework
L • Value Chain Analysis Evaluation Criteria • I-Wish-I-Knew • Value Proposition
S Tool • Statistical Analysis • STAR model Template
• Segmentation Toolkit • Value Map Template
Variables Template • Segmentation • Innovation Brief
• Segmentation Finalization Checklist Template
Hypothesis Template

© 2008 EMM Group.


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Market Segmentation Tools

1 2 3 4
Identify Develop Execute
Objective Customer Segmentation Go-To-Market
Setting Segments Strategy Plan

Segmentation Objectives Market Definition Template Value Chain Analysis


Template
Na me Na me Na me Na me End User
Business Need - (% of (% of (% of (% of (% of
issue/ opportunity decision decision decision decision decision
made) ma de) ma de) ma de) ma de)
Decisions to
meet need Provider a nd Cha nnel Ma rket Entities

Segmentation
information required
to take decisions

Segmentation Variables Segmentation Hypothesis


Template Template
# Discriminating Options Needs Fulfilled Grp.1 Grp. 2 Grp. 3 Grp. n
Need
Feature Variable s
Flexibility XXX XX XX X

Sca la bility XXX

Accessibility X XX
Profiling
Variable s
>10K 5K – 10K <5K 5K – 10K
Size Employees Employees Employees Employees
Hea d Product
Office Type Hea d Office Sales Office
Office Development

Industry High-tech High-tech Automotive Chemica ls

© 2008 EMM Group.


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Market Segmentation Tools

1 2 3 4
Identify Develop Execute
Objective Customer Segmentation Go-To-Market
Setting Segments Strategy Plan

Research RFP Template Research Design

Statistical Analysis Toolkit Segmentation Finalization


Checklist
How are the segments:
✔ Identifiable/measurable?
✔ Substantial/relevant?
✔ Accessible?
✔ Distinguishable/actionable?
✔ Durable/stable?

© 2008 EMM Group.


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Market Segmentation Tools

1 2 3 4
Identify Develop Execute
Objective Customer Segmentation Go-To-Market
Setting Segments Strategy Plan

Target Segment Hierarchy of Needs


Selection Criteria
Segment Attrac tiveness

Explore Domina te
Emo tional
benefits

Func tional bene fits

Ignore Ha rves t

Produc t attributes

Ability to Compe te

I-Wish-I-Knew STAR Model


Stra tegy

Rewa rds Structure

People Processes

© 2008 EMM Group.


5
Market Segmentation Tools

1 2 3 4
Identify Develop Execute
Objective Customer Segmentation Go-To-Market
Setting Segments Strategy Plan

Internal Communication Value Proposition


Framework Elements Statement Formula
Target “To ____________________________
Core need/s who need ________________________
Who What Why How When Where
Offering Name the __________________________
Frame of Reference is a ____________________________
Benefits that ____________________________
Point of Difference which ____________________________
Support/RTB because only
Strategic Price At the
_________________________
price______________________________

Value Map Customer Experience

© 2008 EMM Group.


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