Segmentation

A foundational step in EMM Group’s Go-to-Market solution is customer segmentation or market segmentation. We start with segmentation for a simple reason; unless one understands how customers are segmented or, more accurately, how their needs are segmented, it is impossible to build an effective marketing strategy.

Many marketers make the fundamental error of overlooking segmentation or of assuming they understand their market well enough to bypass rigorous segmentation research. More marketing campaigns fail because of this omission than almost any other mistake. Even when marketers do take the time to segment the market, many focus on segmenting by behavior, by demographics or "firmographics," easily available profiling characteristics that have no immediate relationship to customer need. This segmentation approach also usually yields sub-optimal results.

EMM Group believes in needs-based segmentation and on using a rigorous, step-by-step approach to develop reliable, actionable, profitable segmentation.

EMM Group's comprehensive segmentation approach consists of four major steps, each with proprietary tools, customized workshops, and specific inputs and outputs. The four major steps in segmentation are:

STEP #1: Set the Segmentation Objectives

  • Key Outputs: Research design, data collection, data analysis, segment validation
  • EMM Group Tools: Segmentation template, statistical techniques, validation tips

STEP #2: Conduct Research

  • Key Outputs: Segmentation objectives, scope, need and profiling variables, segmentation hypothesis.
  • EMM Group Tools: Guide: What is segmentation, Guide: Segmentation variables, segmentation objectives and scope template

STEP #3: Select the target segment (s)

  • Key Outputs: Target segment selection, identifying knowledge gaps, identifying deep and rich insights about target segments
  • EMM Group Tools: Target segment template, optimizing segmentation: a Guide

STEP #4: Communicate Segments and Implications

  • Key Outputs: Stakeholder ID, internal Communication Plan
  • EMM Group Tools: Communicating Segmentation and targeting: a Guide