Best Practice Report

Creating And Validating Market Segmentation

January 1st, 2018
With contributor:


Segmentation requires the identification of customer differences and the reasons for these differences. Analyze customer data from internal and external sources to confirm and refine proposed segmentation. For products or product lines, this is often done by a product manager or marketer; for companies or divisions, by product and marketing leadership under the direction of the senior leadership team. Segmentation should be tested and validated in the market before being finalized. In this report, we define a five-step process for selecting segmentation dimensions (see Identifying Dimensions For Market Segmentation), then applying and testing a segmentation approach.

Want to read the full report?

Contact us to become a client

This report is available for individual purchase ($1495).

Forrester helps business and technology leaders use customer obsession to accelerate growth. That means empowering you to put the customer at the center of everything you do: your leadership strategy, and operations. Becoming a customer-obsessed organization requires change — it requires being bold. We give business and technology leaders the confidence to put bold into action, shaping and guiding how to navigate today's unprecedented change in order to succeed.