| Market segmentation defines logical groups of | | | | economic, operational and technological reasons they |
| potential buyers who exhibit similar buying behavior | | | | need the new solution. |
| because they share common needs, problems, | | | | First, consider the strategic motivations for adopting |
| business strategies, etc. Segmenting the market helps | | | | a new technology solution. How can the new |
| you see behavior patterns that you can use to find | | | | technology enable new business strategies, create |
| and develop accounts in your territory. | | | | competitive advantage or dramatically improve |
| High potential market segments are the ones where | | | | performance? |
| the combination of market drivers is creating enough | | | | Next consider the economic motivations of adoption. |
| tension to convince people to try out new solutions. | | | | What are the financial benefits of implementing the |
| It is usually the combination of an increasing desire | | | | solution? Consider the 'above the line' benefits - |
| for enablement -the need to connect to the Internet | | | | incremental revenues and increasing market share - |
| -with an increasing frustration with legacy constraints | | | | companies can reap from applying the new |
| - historic buildings that are expensive to wire - that | | | | capabilities to emerging customer needs. Also, think |
| creates enough pain to motivate people to change. | | | | about the 'below the line' cost savings that happen |
| There are many ways to segment a market. Market | | | | when new technologies enable you to improve |
| analysts prefer traditional market segmentation, such | | | | operational efficiency or increase the productivity of |
| as company size, industry segments, geographic | | | | other resources. |
| regions, etc. However, in early markets you may find | | | | What are the operational motivations for adoption? |
| that it is easier to find prospects when you segment | | | | How could the new technology improve |
| the market using less traditional factors, such as | | | | manufacturing processes, increase capacity without |
| changing consumer behavior, emerging distribution | | | | incremental capital investment, lower inventory |
| channels, or technology adoption profiles. | | | | carrying costs, etc? Think about the many |
| Defining emerging market segments helps you make | | | | operational problems the new technology can solve. |
| sense out of what is happening in your territory, so | | | | Finally, consider the technological advantages of |
| you can find opportunities. There are many sources | | | | adopting the new solution. Many times your very first |
| for insightful information about market trends and | | | | buyers will be other technologists who are motivated |
| emerging customer needs - business and trade | | | | by the technological brilliance of your new, more |
| magazines, newspapers, and market research | | | | elegant solution. What are the key technology |
| reports, etc. Look for patterns in the information to | | | | problems that your new solution solves? The answer |
| figure out how the energy of the market drivers is | | | | to this question also helps you identify the legacy |
| causing segments to emerge. | | | | constraints that are creating tension in the |
| Why would someone want to buy your technology | | | | marketplace. |
| solution? | | | | Evaluate each potential prospect in your territory and |
| As companies try to capture the opportunities | | | | identify what might motivate an account to consider |
| created by market change they implement new | | | | your solution. Align what you know about their |
| business strategies. Since your technology promises | | | | business strategies and technology needs with the |
| to help them implement these strategies faster, | | | | key motivations of an increasing desire for |
| better or cheaper, they consider buying it. This is the | | | | enablement and an increasing frustration with legacy |
| primary motivation for technology adoption. | | | | constraints. This activity tells you why they will buy |
| Refine your understanding of why people will adopt | | | | your solution and help you define market segments |
| your technology by considering the strategic, | | | | to explore for sales opportunities. |