This PPT slide, part of the 98-slide Organic Growth Framework (OGF) PowerPoint presentation, outlines a structured approach to identifying segmentation variables, crucial for effective market analysis. It emphasizes the importance of a systematic process, broken down into 4 key steps.

First, the generation of a starter list of segmentation variables is highlighted. This involves leveraging insights from previous market studies and tapping into the "tribal knowledge" possessed by marketers and sales teams. This foundational step is essential for ensuring that the segmentation process is grounded in real-world data and experiences.

Next, the slide discusses the screening of these variables for observability and actionability. Organizations need to identify which data they routinely collect and can easily analyze. This step ensures that the variables chosen are not only relevant, but also practical for implementation.

The third step focuses on determining the correlation of variables with behavioral objectives. Here, the aim is to calculate or estimate how closely customer behaviors align with their observable characteristics. This correlation is vital for understanding which variables will most effectively drive marketing strategies.

Finally, the slide presents the need for a short list of segmentation variables. This involves selecting those that show a strong correlation with demographic, firmographic, and situational characteristics. The takeaway is clear: a robust set of segmentation variables is essential for tailoring marketing efforts and achieving desired outcomes.

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