What is Market Segmentation? How to Use it For Maximum ROI

Here we discuss what is Market Segmentation? How to Use It for Maximum ROI.

What’s B2B Market Segmentation?

Market segmentation determines where you should target. Segmentation shows you which groups exist so you can then target with your brilliant marketing. Market segmentation creates subsets of a market based on demographics, needs, shared interests, priorities, psychographic and behavioural criteria. So you better understand your target audience. So, traditional market segments are:

  • Demographics
  • Psychographics
  • Technical knowledge
  • Behavioural activities
  • Usage and purchase situations
  • And the benefit requirements from your products

B2B segmentation research allows you to understand the needs of each market segment and whether current solutions are meeting those needs. And find segment adoption patterns as well as pricing and quality expectations and so much more. Conducting segmentation research is usually structured as follows:

The structure

1. Firstly, set the objective

The purpose of the market segmentation process?

2. Then isolate customer segments

Collect data and analyse results. And develop sectors. 

3. Evaluate target segments

The most viable option to develop your product forward. 

4. Market segmentation strategy development

 Identify implications of the segment. 

5. Lastly, create the launch plan

Identify key stakeholders, create ideas and internally announce the launch plan. Then execute the project using your target segments.

It is essential to understand why you want to do a market segmentation process in the first place. And what results do you want to get from it? What variables of customer segmentation and hypothesis are you looking for within the findings? Identify specific potential users you can offer a more personalised product/service. And then select your target segment and identify the implications of this segment. Then, who are the key stakeholders? 

Not just your customers

Of course, you don’t have to just look at your customers. So try market segmentation with prospects, your competitors’ customers and your partners. And like everything associated with Competitive Intelligence, it’s about asking the right questions. So, key questions like:

  • Firstly, what are the needs of each market segment?
  • Secondly, why do customers look for new or alternative solutions?
  • And what problems are they looking to solve?
  • Also, do any current solutions in the market satisfy these problems?
  • Can you isolate any patterns within your target market?
  • What value, prices and quality does the segment expect?
  • And are there any gaps in provision that you could exploit?
  • What are the associated costs when switching from one supplier to another?
  • And are your own experiences preventing you from seeing market changes?
  • Finally, do all solutions in the marketplace lack specific capabilities?


This article discusses what is Market Segmentation? And How to Use It for Maximum ROI. So we suggested that it’s essential to get your market segments right to ensure you maximise your ROI. And for product development, marketing, as well as sales. Finally, market segmentation research is an integral part of a good strategy. 

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