Market Segmentation

For many organizations, market segmentation is one of the most discussed and least understood marketing concepts. It can be difficult to identify segments that are profitable, measurable, accessible and “usable” throughout your organization — all at the same time. Pivot knows how to address these issues and design projects to meet your specific segmentation needs.

“Marketing must invent complete products and drive them to commanding positions
in defensible market segments.”  — Bill Davidow, author of Marketing High Technology

There are literally thousands of books and volumes of material on the subject.  One thing we know for certain: A market segment is not neat and tidy.  Segments are never perfectly distinct and exclusive.  They are non-exclusive “country clubs” of marketing that help us prioritize and design marketing strategies and tactics effectively.

Drawing upon decades of experience, Pivot’s research experts know how to design and execute studies that identify market segments based on multiple factors including demographics, company characteristics, behaviors, needs, attitudes, values, benefits, price sensitivities, likelihood to purchase and more.  We don’t just identify segments, we address the critical “what now?” implications that help you develop a plan for reaching the segments and appealing to the motivations of each.

To create the most meaningful and actionable business segments, we employ several a priori and post hoc segmentation methods.  We start by designing questions that gather many variables hypothesized to form the best segments.   Segments are formed based on answers (the variables) uncovered in the primary data collection process, whether by phone, web, mail or in person.  The exact design of the project depends on the targeted population, complexity of the product or product line (or services), number of competitors and stage of the product life cycle.

The most important question to be addressed early in the research process is, “How do you plan to use the segments?” Having a clear understanding of the required results and how these results will be used play critical roles in the success of any segmentation analysis.  Success means developing segments that

  1. have actionable “life” for all client stakeholders,
  2. have a basis that includes bottom-line business metrics such as market share, sales, profit growth or cost reductions, and
  3. are accessible and measurable.

Ultimately, there are many ways to segment any market, and it’s best to use more than one approach, analyze the most well-defined segments and approach “mass customization” as far as possible.

Listed below are examples of questions and objectives we can answer and help you achieve using segmentation research:

  • How do we segment our entire audience to communicate in meaningful and profitable ways?
  • What segmentation model will grow revenue with more efficient use of resources?
  • What primary and secondary segments should we focus on to improve business outcomes?
  • On what basis should we develop tailored offerings and positioning?
  • Which audiences should we prioritize for additional investment?
  • How well does our value proposition serve each of oour audience segments?
  • Which audiences are most viable in the short-term versus long-term?


Use one of the options below to get in touch with us to start a conversation with Pivot about your marketing, research, or web needs. We are standing by.

Pivot Group, LLC | Mail: PO Box 1326, Wilsonville, OR 97070 | Visit: 7405 SW Tech Center Drive, Building B, Suite 140, Portland, OR 97223