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Needs-Based Segregation
Group customers into segments based on similar needs and benefits sought by customers in solving a particular consumption problem
Segment Identification
For each needs-based segment, determine which demographics, lifestyles, and usage behaviors make the segment distinct and identifiable (actionable)
Segment Attractiveness
Using predetermined segment attractiveness criteria (such as market growth, competitive intensity, and market access), determine the overall attractiveness of each segment
Segment Profitability
Determine segment profitability
Segment Positioning
For each segment, create a "value proposition" and product-price positioning strategy based on that segment's unique customer needs and characteristics
Segment "Acid Test"
Create "segment storyboard" to test the attractiveness of each segment's positioning strategy
Marketing-Mix Strategy
Expand segment positioning strategy to include all aspects of the marketing mix
Product
Price
Promotion
Place
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