Designing for superior business performance
A guide for technology, creative and startup leaders
"Instead of focusing on the competition, focus on the customer.”
Scott Cook.
Choice 3: Delight we create
Segment targeting
In this section
In this section examine the attributes of the segments you have defined
to identify the feasibility of cost effectively or profitably serving this segment.
For example, if the segment represents executives at the top 500 companies,
but no-one in the business has any access to those executives and the business
lacks the resources to hire someone to access those executives
then although potentially valuable,
the segment may not be feasible.
Alternatively, the segment may be accessible but based upon other factors
the cost of acquiring those customers maybe too high to be profitable or viable.
There has been startup businesses with sales cycle that we so long,
based upon their chosen segment, that by the time decisions were close to being
made, the business was no longer viable.
Finally, the segment needs to be of sufficient size to offer a return on the investment.
Assessing the market segment
Assess the accessibility and financial returns available from the defined segment.
| Attribute | Favorability | Assessment |
|---|---|---|
|
Accessibility |
High | Medium | Low |
[Comments in here] |
|
Size |
High | Medium | Low |
[Is the market of sufficient size to make a return Is the market one the value proposition can win in and then expand?] |
|
Profitability |
High | Medium | Low |
[Is the market expected to be profitable? i.e., the revenue from a customer will exceed cost of acquisition and cost of goods sold] |
|
Channels |
High | Medium | Low |
[What type of channels will be necessary to create awareness, promote, sell, deliver and support the value proposition for this segment] |
|
Advantages |
High | Medium | Low |
[What advantages does this business have in this market segment e.g., existing reputation, partnerships, that would allow it to succeed / win] |
|
Challenges |
High | Medium | Low |
[Challenges and risks for this business in this market] |
Ideally, your segment is assessed as readily accessible of an acceptable size and profitability. Channels necessary to deliver your value proposition are accessible. If accessibility, profitability and too many other factors are low accept for challenges this segment may not be the right choice. Consider a different segment.
Continue . . .
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