Segmenting Markets For Rapid Growth

Fuelling rapid growth comes from gaining sustainable competitive advantage and differentiation - which will come from looking for ‘response bases’ to identify an uncovered (unsatisfied) market segment.

Response bases are customer beliefs, attitudes, preferences, aspirations and resultant perceptions and behaviours. Unearthing a key ‘preference’ or significant ‘attitude’ that is very important to a sizeable group of customers in a product category and incorporating that proprietary knowledge into tailored marketing & sales strategy and programmes- leads to better, more cost effective buying responses ( and reduced buyer resistance) from that target market. It also underpins a sustainable competitive advantage.

Unearthing response base information and then using it to group customers according to their common response and identification bases involves two stages.

Stage 1 – Primary qualitative market research

Primary qualitative market research, using Depth Interviews and Focus Groups is done to unearth the ‘response bases’ information that identifies an uncovered (unsatisfied) market segment. These response bases often emerge from three specific areas of enquiry:

  1. Customer needs that are not met (or unsatisfactorily met) by other competitors in the current market
  2. Desired customer buying process, decision-making process requirements and brand loyalty propensity
  3. Response and behaviour in relation to marketing communications and environment.

Stage 2 - Quantitative market research
The potential Response /Identification Basis questions and variables to be used in the quantitative segmentation research will emerge from the Qualitative Depth and Focus Group research conducted. A base-line segmentation study will be done to aggregate groups of buyers who respond similarly to a set of potential Response and Identification Basis Questions and Descriptor/Attitude Questions.
Example Identification & Response Segmentation Bases


The results of the quantitative base-line segmentation research are then analysed to identify important unmet needs in attractive customer market segments for the business and to select the response base information for incorporation into tailored (right product, right message, right way, right time) marketing and sales programmes for those customer segments.

This then becomes the growth engine for the business


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