Gartner Research

A Practical Guide to Market Segmentation

Published: 08 January 2020

ID: G00464988

Analyst(s): Derry Finkeldey , 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 and service providers should use this research to more effectively define target segments and focus their sales and marketing efforts.

Table Of Contents
  • Benefits of More Detailed Target Segment Definition
  • A Deliberate Approach to Communicating the Role of Target Segments Can Increase Acceptance Across Marketing and Sales
  • How to Identify Target Segments Effectively
    • Start by Understanding the Demand-Side Dynamics of Your Market
    • Map Out the Size and Competitive Landscape and Intensity
    • Be Realistic About Your Internal Capability to Serve and Compete
  • The Role of Data in Activating Target Market Segments
    • Relevant, Discrete Sets of Profile Data Are Key to Success
  • Keys to Success
  • Summary

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