Best Practice Report

Developing Needs-Based Market Segmentation

January 1st, 2018

Summary

Organizations often seek to grow revenue for a current offering by identifying new market segments. Additionally, when sizing a market for a new offering, product managers typically identify a range of potential segments with a need for the offering. However, focusing on common segmentation dimensions, such as business size or industry, that are not directly predictive of a need for an offering may result in resources being directed at the wrong segments while more lucrative market opportunities are missed. In this report, we describe a three-step process to develop and act on segmentation based on customer and buyer need.

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.