Sometimes We Need To Start Slow to Prove a Point

Conducting a market segmentation study for a client is a sizeable upfront investment and is pervasive when a company implements its results. Therefore, we suggested developing a sample database and performed multivariate analysis to derive key determinants to be included in the segmentation study. Within four months, prior to the actual results of the study, by implementing these key determinants the company experienced an increase in the response rate of their direct mail program from 7% to 15% which resulted in an additional $20 million dollars in revenue.

MARKET SEGMENTATION

Segmentation allows you to pinpoint your target market by identifying customers with common characteristics. The result is information you can use to develop more effective strategies and tactics for reaching your target segments.

Segmentation provides answers to these vital questions:

• How is your market segmented – based on customer needs or attitudes?
• What segments offer the greatest potential opportunity, and which should you target?
• How your brand and products are currently aligned with target segments?
• How can you improve your product and marketing strategies to reach and meet the needs of target segments more effectively?

At BERTOLLI Research & Marketing, we offer two approaches to segmentation: needs-based and attitudinal. The one that’s right for you depends on your objectives.

Needs-based segmentation is often used in conjunction with conjoint analysis,. Respondents are grouped into segments that place similar value on the product features included in the study. With a needs-based approach, there’s no requirement to collect additional data – the information obtained from conjoint analysis serves this purpose.

Attitudinal segmentation categorizes survey respondents into like groups based on what they think about a brand or product. This approach goes beyond understanding the importance of different product features across segments to shed light on the customer’s mindset.

We typically recommend qualitative research – either bulletin board focus groups and/or in-depth interviews – as an initial step in this type of segmentation to capture the full breadth and depth of market attitudes toward a particular product category.

We invite you to learn more about how segmentation will benefit. Contact us at 404-307-7297 or emailing Chet@BertolliRM.com.