Editor's Note: Take a look at our featured best practice, Customer Segmentation (47-slide PowerPoint presentation). Customer segmentation is an important tool for customer analysis.
- To identify cost reduction opportunities
- To identify revenue and profit maximizing strategies
- To achieve differentiation and to preempt competitors' moves
- To determine the strategies that fit best with a company's core [read more]
Also, if you are interested in becoming an expert on Strategy Development, take a look at Flevy's Strategy Development Frameworks offering here. This is a curated collection of best practice frameworks based on the thought leadership of leading consulting firms, academics, and recognized subject matter experts. By learning and applying these concepts, you can you stay ahead of the curve. Full details here.
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Segmentation.Everyone’s doing it, but are you doing it right?
Although segmentation should help target the right customers, it does not always bring the intended value. Inappropriately or incorrectly defined segments may lead management to make bad strategic decisions.
Market and Customer Segmentation defines a number of different groups of people or organizations, which our company aims to reach and serve. The intent of the segmentation exercise is to two-fold:
Create the foundation for a relevant Value Proposition…
With products matching customers needs;
With adjusting pricing and discount schemes; and
With service offerings attracting and keeping the relevant customers loyal.
Adjust the Go-to-Market Strategy (GTM) in order to…
The basis of Operational Segmentation is prioritizing market segments based on Time, Resources, and Value. It seeks to understand these business decisions:
Determine which customers are most attractive to our business model.
Know the size/value of our customer segments.
Understand how we service different customer groups.
Determine how we differentiate our products and services.
Questions that can be answered from Operational Segmentation include:
Market and Customer Segmentation defines a number of different groups of people or organizations, which our company aims to reach and serve. The intent of the segmentation exercise is to two-fold:
1. Create the foundation for a relevant Value Proposition...
- With products matching customers [read more]
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Gain the knowledge and develop the expertise to become an expert in Strategy Development. Our frameworks are based on the thought leadership of leading consulting firms, academics, and recognized subject matter experts. Click here for full details.
"Strategy without Tactics is the slowest route to victory. Tactics without Strategy is the noise before defeat." - Sun Tzu
For effective Strategy Development and Strategic Planning, we must master both Strategy and Tactics. Our frameworks cover all phases of Strategy, from Strategy Design and Formulation to Strategy Deployment and Execution; as well as all levels of Strategy, from Corporate Strategy to Business Strategy to "Tactical" Strategy. Many of these methodologies are authored by global strategy consulting firms and have been successfully implemented at their Fortune 100 client organizations.
These frameworks include Porter's Five Forces, BCG Growth-Share Matrix, Greiner's Growth Model, Capabilities-driven Strategy (CDS), Business Model Innovation (BMI), Value Chain Analysis (VCA), Endgame Niche Strategies, Value Patterns, Integrated Strategy Model for Value Creation, Scenario Planning, to name a few.
From a high-level, the goal of a marketing strategy is to identify a target market and develop a marketing mix that will appeal to those potential customers. Decisions regarding the ideal marketing mix can be organized in terms of Price, Promotion, Product, and Price. However, the goal is not to [read more]
This presentation will focus on the second phase of the Customer Analysis process: Segment Customers and Derive Insight.
Customers segment their customer base to better understand their customers. The overall objective of customer segmentation is to analyze customers, find niche opportunities, [read more]
Ever more B2C concerns are going all-out to develop Customer-centric organizations. Companies Organizations in Customer-centricity depend on some type of Market Segmentation.
Market Segmentations assist in understanding the customer more intimately. This understanding has to be based on [read more]
A mind map is a visual diagram that represent ideas, tasks, or other items linked to and arranged around a central key concept. It facilitates structuring information, helping users to better analyze, comprehend, and generate new ideas.
Using the mind map tool also can help reveal numerous [read more]
Segmentation. Everyone’s doing it, but are you doing it right? 
