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Market Segmentation

For most imaging and document technology firms, identifying and targeting unique market segments is essential in today's competitive marketplace. In many product and business categories, broad horizontal products with mass market appeal either do not exist or are dominated by a few players with increasingly tight margins

New market segmentation strategies are often required for a company to create a strategic advantage over its competition. Companies need to identify or define new market niches, and then concentrate their product, marketing, and financial resources into that niche.

A new market segment must respond differently to variations in the product, marketing, and distribution mix compared with other customers in the market. Key elements of a market segment include:

• Must have unique requirements, attributes, or behavior
• Must be reasonably stable over time
• Must be able to be reached efficiently through specifically targeted distribution and communication initiatives
• Must be measurable

There are a variety of factors that must be examined to identify relationships and market segment discriminators, including:

• Product attribute preferences
• Personal and company values
• Product purchase patterns
• Product usage patterns
• Benefits sought
• Brand preferences
• Price sensitivity
• Brand loyalty
• Dealer loyalty
• Spending and “profitability”
• Lifestyles
• Self image
• Environmental attitudes
• Demographics
• “Firmographics”
• Geography

Developing a new market segmentation scheme requires a structured process that yields actionable results. InfoTrends has extensive experience in market segmentation in the imaging and document technology industry.

• Interview customers and dealers to understand attributes, values, and behaviors
• Develop a unique market segmentation
• Size and forecast demand for your products and services by the new segmentation
• Develop a go-to-market strategy to effectively reach the target segments

Contact InfoTrends to discuss how we can help you investigate new market opportunities for your company.