There are many ways to segment markets. The single biggest benefit that comes from a consistent definition of your target markets is clarity, from executive strategy all the way through the execution of product, marketing, sales and operational initiatives.
Consider just a few common scenarios that would be greatly simplified if there were a clear and consistent definition of your target markets across the entire organization.
- Meeting Company Growth Targets
Breaking down your company’s short and longer term growth goals by market segment establishes clear priorities for product, marketing and sales initiatives because it’s much easier to quantify your organization’s growth opportunities (across all products and services) by market segment than the guesswork that goes into revenue projections by product line.
- Ideas for New Products/Services
The value of any new product lies in its value to one or more markets, but the value of a new product to your company isn’t limited to the product itself. Consider the value of a new product in conjunction with other products and services (to form a more powerful solution) and create the business case around incremental revenue that simply comes from solving a much bigger problem in specific market segments.
- Marketing & Sales Messages
Relevance rules! If you’re generically positioning benefits of each product, you’re leaving money on the table and compromising your competitive position. The most relevant market story wins sales. Products are the proof points.
Clearly defined target markets simplify everything, and it begins with a consistent definition of your market segments. Industry, company size, geography, operational area, and target users are all relevant. Define your segmentation structure in a way that’s easiest for the organization to stay aligned with its target markets.
If inconsistencies in your definition of market segments are wreaking havoc on your product priorities and marketing messages, contact Proficientz or schedule a private onsite training course to learn how our framework employs a strong market segmentation discipline to simplify product management, marketing and sales.