Step 2: Specifying the Ideal Target Segment

Abstract

Market segmentation analysis is driven primarily by the desire of an organisation to better cater to a part of the market and, in so doing, secure a competitive advantage. At the end of the segmentation analysis, the organisation needs to select one or more target segments. To make this selection process as easy as possible, it is useful to think about what an ideal target segment might look like from the perspective of the organisation at the early stages of the market segmentation analysis. This chapter discusses how such a conversation can be facilitated. The outcome of this process directly informs the subsequent, more technical steps of the process. A checklist is offered to guide organisations through some of the key questions they may wish to ask at this stage.