Market and Customer Segmentation
Frost & Sullivan first works in partnership with the client to
understand the role of the segmentation model. Segmentation
models can apply directly to strategic planning, marketing
initiatives, research activities, or enrichment of internal
databases - agreement on areas of emphasis is critical to decisions
regarding design and analysis. Partnership with the client also
ensures critical "buy in" from top management. Ideally, the research
design reflects input from the client, Frost & Sullivan’s experience
with similar models, and qualitative end-user feedback.
In addition to providing the standard analysis for strategic planning - gap
analysis, corporate strengths and weaknesses, key consumer
motivators, niche opportunities, etc.- the Frost & Sullivan team
understands the delicate trade-offs in design necessary to satisfy
additional needs in database development or research enhancement.
Furthermore, research design typically involves layered segmentation
models to increase flexibility regarding satisfaction of client needs.
The advanced analytics necessary for development of segmentation
models is valid under specific assumptions about the data. Frost & Sullivan
enhances the integrity of the data by building special safeguards into
the research design to maximize the generation of data valid for
advanced analytics. Moreover, routine checks are made after fieldwork on
the validity of the data and necessary remedial modifications carried out.
The client is thus protected against the misleading conclusions that can
result from invalid data.
The best conceived segmentation model is meaningless if
not communicated effectively to the client. Frost & Sullivan
commits its entire arsenal of advanced analytics software toward
the development of clear, simple, and powerful charts and graphics.
As further insurance of corporate buy in, Frost & Sullivan conducts
segmentation workshops, on demand, for sales people and key
Finally, Frost & Sullivan works with the client toward forging
segmentation linkages with all possible client research activities - one
off studies, tracking studies, recruitment of segment members for
Optimization of Value
Segmentation models are assessed in terms of the potential to satisfy
needs related to marketing activity, research activity, and the enrichment
of internal databases. At Frost & Sullivan, all decisions regarding design
and analysis are made to optimize the value of the client's financial investment
given perceptions of this central role.
A typical segmentation study offers many options for statistical methodology
and segmentation structure. Frost & Sullivan keeps the client apprised of
the results of preliminary analysis and makes ongoing adjustments in analysis
to enhance the marketing relevance of the model.