Gartner Research

A Practical Guide to Market Segmentation

Published: 13 August 2018

ID: G00369089

Analyst(s): Derry Finkeldey , Hank Barnes , Suzanne White


Identification of ideal groups of customers for your product or service is at the heart of market segmentation efforts. To win in competitive markets, technology product marketers should use this document to more effectively define target segments and focus their sales and marketing efforts.

Table Of Contents


  • A Deliberate Approach to Communicating the Role of Target Segments Can Increase Acceptance Across Marketing and Sales
  • Defining a Target Segment Should Start With a Thorough Understanding of the Dynamics of Your Market
  • How to Identify Target Segments Effectively
    • Size and Competitive Intensity
    • Internal Capability to Serve It
    • Characteristics of the Ideal Customer Profile
  • The Role of Data in Activating Target Market Segments
    • Relevant, Discrete Sets of Profile Data Are Key to Success
  • Benefits of More Detailed Target Segment Definition
  • Keys to Success
  • Summary

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