Segmentation of Needs

Then you should establish what the need is and who is most likely to experience that need. Your segmentation will be determined by a match between the benefits offered by your offering and the need of the prospect. Some "need" categories for segmentation include:

Reduction in expenses. Prospects might be businesses that are downsizing (right sizing), businesses that have products in the mature stage of their life cycle or individuals with credit rating problems.

Improved cash flow. Prospects might be businesses that have traditionally low profit margins, businesses that have traditionally high inventory costs or individuals that live in expensive urban areas.

Improved productivity. Prospects might be businesses that have traditionally low profit margins, businesses that have recently experienced depressed earnings or individuals with large families.

Improved manufacturing quality. Prospects might be businesses with complex, multi-discipline manufacturing processes.

Improved service delivery. Prospects might be service businesses in highly competitive markets, product businesses requiring considerable post-sale support or individuals in remote or rural areas.

Improved employee working conditions/benefits. Prospects might be businesses where potential employees are in short supply.

Improvement in market share/competitive position. Prospects might be new entrants to a competitive market.

Need for education. Prospects might be businesses or individuals looking for books on business planning, or seminars on Total Quality Management.

Involvement with social trends. Prospects might be businesses concerned with environmental protection, employee security, etc. or individuals who believe in say 'no' to drugs, anti-crime, etc.

Specific - relating to product/service characteristics. Prospects might be businesses or individuals interested in safety, security, economy, comfort, speed, quality, durability, etc.