Market segmentation

The main challenge for a product manager is to have an offering that is fully tailored to the needs of the target group and to ensure that most of values recognised by customers are represented. Those responsible for development of a product range need information regarding not only individual goods, but also the offering as a whole.

  • Is the product portfolio complete or are there any products missing but important from the point of view of present customers?
  • Which of the products will meet the needs of the relevant customer groups?
  • How to optimise the product portfolio for our present and potential customers?

An appropriately differentiated offer has an impact not only on the company’s success, but also on the sales results for individual products, or even on the customer satisfaction and loyalty to particular product lines.

Market segmentation must take into account the nature of products and the purchasing model. For instance, segmentation studies for FMCG and luxury products are completely different. Segmentation studies may also be applied to services.

A segmentation analysis is an excellent opportunity to verify the company’s awareness of its customers and to identify their preferences and expectations.

What do we offer?

The aim of proper market segmentation is answering a question about the extent to which the current offering meets the needs of the target group and whether it allows customers to migrate between price segments (owing to a well-defined premium category). In addition, the segmentation can help identify the offer aspects that attract new customers and the gaps in the offering that result in the loss of buyers.

How do we do it?

Thanks to years of experience, PMR experts have developed a proprietary methodology dedicated to segmentation research. Psychographics is the segmentation of consumers in terms of their preferences, habits and expectations. Its aim is to break down consumers into coherent groups. The segments are then described, for instance, in terms of their demographic characteristics, preferences, product groups.

Step 1. Defining segments

In our opinion, a good segmentation is one that:

  • Clearly distinguishes between groups of more or less attractive customers.
  • Defines segments that are accessible (can be reached), relatively large, and responsive to marketing efforts.
  • Has as many marketing applications as possible.
  • Is accepted as useful in practice by its end users.

Step 2. Expanding on the segments 

We expand on the segment descriptions and tailor them to the needs of segmentation users (e.g. sales or marketing departments).

  • On the basis of the collected data, we try to ensure that the new segment descriptions are factual and true to life.
  • It is important for us that they include examples of behaviour, opinions, methods of operation of segment representatives and other information useful for departments responsible for sales and direct communication with customers.

Step 3. Adjustment of activities based on PMR recommendations

Based on the developed segment descriptions, we provide guidance to our clients regarding:

  • What to communicate: what message should be sent to particular customer segments?
  • How to communicate: which communication channels will be most effective for particular segments?

For more information, please contact us:

Krystian Gryzło

Senior Market Researcher

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We offer market research and economic analyses and forecasts prepared on request of our Clients. We specialise in market sizing, preparing development forecasts and business-to-business surveys.
PMR offers:
- Periodic reports on Retail, Construction, Pharma & Healthcare and ICT markets in CEE countries
- Quantitative and qualitative market research, including with the use of CATI, CAWI, FGI, IDI, expert interviews and other methodologies
- International fieldwork services for quantitative and qualitative research in the CEE region.

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