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 the 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 decision-makers.
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 qualitative studies.
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.