Comments on: A Market Segmentation Example

By: Market Segmentation for Industrial Marketers – Why You’re Probably Doing it Wrong | Constant Cogitation

Wed, 14 Apr 2010 10:23:42 +0000

[...] yields little better results than just taking a shotgun approach and hoping you hit a target. The next post provides an example of how market segmentation is executed to identify attractive segments for [...]

By: Greg Strosaker

Greg Strosaker — Tue, 30 Mar 2010 21:57:32 +0000

I thought I had posted a reply to your comment, but I'm now not seeing it on the blog. If it didn't come through, I apologize - let me try again here.

Thanks for your visit and your comment. You raise good questions. I think that classification can be a helpful, or maybe even "necessary but not sufficient," first step towards a good segmentation. For example, we use classification (by NAICS code) to help us understand, based on government data and private market research, which types of customers are making capital investments in the types of equipment we serve and may therefore be opportunities. We would then move towards visiting some potential key accounts to start getting a sense on how their approaches to budgeting, purchasing, or there general attitudes towards our types of solutions may differ. This how we bridge the gap from "pre-segmentation" to segmentation.

It may not hurt to have some preconceptions about possible segments within a given "class" of customers, so long as you don't let your biases become so strong that you aren't willing to set them aside in the face of new information.

I hope this helps, please let me know if I can clarify this any further.

By: Greg Strosaker

Greg Strosaker — Tue, 30 Mar 2010 17:57:32 +0000

By: Greg

Greg — Fri, 26 Mar 2010 01:53:07 +0000

Thanks for your visit and your comment. You raise good questions. I think that classification can be a helpful, or maybe even “necessary but not sufficient,” first step towards a good segmentation. For example, we use classification (by NAICS code) to help us understand, based on government data and private market research, which types of customers are making capital investments in the types of equipment we serve and may therefore be opportunities. We would then move towards visiting some potential key accounts to start getting a sense on how their approaches to budgeting, purchasing, or there general attitudes towards our types of solutions may differ. This how we bridge the gap from “pre-segmentation” to segmentation.

It may not hurt to have some preconceptions about possible segments within a given “class” of customers, so long as you don’t let your biases become so strong that you aren’t willing to set them aside in the face of new information.

I hope this helps, please let me know if I can clarify this any further.

By: interlingo

interlingo — Thu, 25 Mar 2010 20:06:50 +0000

Greg, excellent article! I guess we're one step before this where we are working to get “customer meetings to determine values”. Do we do a “pre-market segmentation analysis” to determine who to meet with, or should we start with existing customers? How would this work if we are breaking into new markets where we don't yet have customers? Any advice for bridging the gap between classification and segmentation?

By: Greg Strosaker

Greg Strosaker — Fri, 04 Dec 2009 14:10:01 +0000

So sorry for the issue with posting the comments, I'm not sure what the problem is as guests should be allowed to contribute. I do use Disqus for comments as many blogs do so you could register with them, or try again as a guest. I sincerely appreciate your interest in my blog and welcome your feedback.

By: James Matorin

James Matorin — Fri, 04 Dec 2009 13:57:52 +0000

As a guest, I have tried to post comments on your last 2 blogs to no avail. Please advise. Good stuff! Plenty to discuss.

By: Greg Strosaker

Greg Strosaker — Fri, 04 Dec 2009 12:10:01 +0000

By: James Matorin

James Matorin — Fri, 04 Dec 2009 11:57:52 +0000

As a guest, I have tried to post comments on your last 2 blogs to no avail. Please advise. Good stuff! Plenty to discuss.

By: Twitted by GAStroz

Twitted by GAStroz — Thu, 03 Dec 2009 13:36:10 +0000

[...] This post was Twitted by GAStroz [...]