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Market segmentation

4 Common Retail Market Segmentation Mistakes that You Might be Making

Even the most successful retail companies agree that the ‘one size fits all’ approach is no longer a viable option to survive in today’s exceedingly competitive marketplace. As such, they are using techniques such as retail market segmentation to stay ahead of the game. However, often the lack of preparation or faults in implementation of a retail market segmentation strategy is where companies fail, and this is just the beginning for any retailer looking to segment their audience and better target the most valuable consumers. With over 15 years of experience in engaging retailers in successful retail market segmentation analysis and implementations, experts at Infiniti Research have identified four retail market segmentation mistakes that companies often make and also suggests how to avoid them.

Improve your marketing effectiveness with the right retail market segmentation strategy. Request a free proposal from our experts.

Why do retail market segmentation strategies fail?


Retail market segmentation

Defining segments too broadly

Segmenting the customer segments too broadly is one of the most common retail market segmentation mistakes that most companies make. This will consequently make them fall short to a competitor who targets more narrowly. Retailers can successfully create narrow segments by analyzing their customer accounts, website visits, and transaction history. By doing so, companies can better target customers. For instance, a customer who may be frequently purchasing a particular product and may be interested in a new and improved version of the product that the company is planning to launch. Although this might be challenging to achieve at the moment, but it would be more feasible when over time more and more data is gathered.

Not aligning business by market segments

Successful retailers tend to create market focused teams or segments which later gets organized into a market-focused business model. This allows the customer communications and transactions to be more targeted, consequently, making the business more streamlined. Businesses who refrain from doing so are more likely to find their retail market segmentation strategy fail.

By segmenting your customers into different, narrow subcategories, you’ll create more targeted experiences for them that result in better marketing and a better ROI from your marketing efforts. Get in touch with our experts to know how we help our clients achieve this.

Managing segments locally

Some businesses that operate in a smaller market currently tend to set up their retail market segmentation strategy to only apply to their local or regional organization. Although this may work well at present, in the long run when the business grows there are chances that the retailer will get blind sided by a more dynamic global economy.

Unclear retail market segmentation results

An effective retail market segmentation analysis should provide the company with strategic direction to move forward. Furthermore, it should also provide a clear idea of which markets are the most viable to target. If a retail market segmentation research does not meet these requirements, then it is an indicator of a failed approach. So, before beginning, get your research team together and clearly define their goals and the information you’re aiming to get.

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Market segmentation

Market Segmentation: A Key to Success for Pharmaceutical Companies

The idea of dividing a market up into homogeneous segments and targeting each of them with a distinct product or message is now at the heart of marketing theory.

Rising costs and demands for affordable health care continue to challenge the traditional business assumptions and economics of the pharmaceutical industry. Also, this is raising internal development risks, costs, and time requirements for clinical trials. To add to the complexity, pharma markets have become fragmented as providers, patients, physicians, and payers look for focused solutions that have optimal safety and efficacy profits for a narrower population of patients. Additionally, the role of greater transparency, reference pricing, and changes in decision-making are essentially shifting decision-making authority away from individual physicians to healthcare administrators and payers. These dynamics result in the complexity of product decision-making and continue to challenge the effectiveness of traditional commercial models in the pharmaceutical industry. This is where the role of market segmentation comes into play. Market segmentation process enables pharmaceutical companies to move beyond product features and benefits or brand position to see specific needs through the eyes of specific market segments and this is an essential component of success for pharmaceutical companies.

Copy of Copy of banner IR (1)What is Market Segmentation?

Market segmentation is the process of segregating a market of potential customers into segments, or groups, based on various characteristics. The segments created consist of customers who will respond similarly to marketing strategies and who share traits such as similar needs, interests, or locations. The sole objective of the market segmentation process is to be able to design a marketing strategy, mix or program that matches, and is as impactful as possible, for each specific segment. It helps companies spend their marketing and advertising budgets much more wisely. Also, it enables companies to refine their product or service offerings for specific segments. Businesses are more likely to be able to meet the needs of a smaller, targeted segment, and therefore be much more successful.

What are the Different Types of Market Segmentation?

Demographic segmentation

Demographic segmentation is one of the widest and simplest types of market segmentation used. Most businesses use it to get the right set of people to use their products or services. Target market segmentation generally divides a population-based on variables. Demographic segmentation also has its own variables such as gender, age, income, family size, occupation, race, religion, and nationality. This type of market segmentation is most commonly used due to the fact that it has readily accessible information through existing customer relationships and can easily eliminate unnecessary data of the audience with just a few inclusions.

Behavioral segmentation

This is a type of target market segmentation that divides the population on the basis of their usage, behavior, and decision-making patterns. Behavioral segmentation divides your customers by their previous behavior in relation to your brand. It checks parameters including:

  • Previous purchases
  • Awareness of the business
  • Patterns of purchase
  • Usage level
  • Knowledge of the product
  • Rating of product or service

Psychographic segmentation

Psychographic segmentation is a type of market segmentation which uses activities of people, lifestyle, opinions, as well as interests to define a market segment. Psychographic segmentation is very similar to behavioral segmentation. But it also takes into account the psychological aspects of consumer buying behavior. These psychological aspects may be consumers social standing, his lifestyle as well as his activities, interests, and opinions.

Still, want to know more about market segmentation and how it can help companies build robust route-to-market strategies? We’d love to help! Contact us today.

Contact USWhat are the Benefits of Market Segmentation?

Benefit #1: Enhances the focus of the company

Target market segmentation is an effective method to enhance the focus of a firm on market segments. Better focus means better business. This helps in designing campaigns specifically for the target segments and aids in better returns and profitability.

Benefit #2: It boosts competitiveness

Naturally, if the focus increases, competitiveness in that market segment will also increase. This can also help in increasing market share and the chances of a new competitor entering might get low. Additionally, brand loyalty increases. Thus, market segmentation also boosts the competitiveness of a company from a holistic view.

Benefit #3: It helps in market expansion

Market segmentation can help in the immediate expansion of the market of any firm. If your market strategy is based on geography, then while catering to a particular territory, you can immediately expand to a nearby territory. Thus, the market share of business increases resulting in more revenue and profits.

Market Segmentation Strategies: Tick the Checklist


A good market segmentation strategy is one which is able to easily measure leads, sales figures, and engagement rates for any single market. If it’s not, then it probably overlaps too much with different segments and needs to be checked.

Clearly identifiable:

If any single segment overlaps too much with another, then probably it shouldn’t be a segment in its own right. A good market segmentation strategy requires every single segment to be substantially different and unique.

Accessible through promotional and communication channels:

If you are able to communicate with your target segments easily, then you can expect your market segmentation strategy to be effective. It does not matter whether this promotion or communication occurs via social media, advertising, telemarketing or e-marketing. As long as you can reach the consumers within it, you can expect to maximize your ROI.


Market segmentation strategies can work effectively if market segments are not fluid but durable. How can you possibly expect to meet the demands, and communicate with, a segment that is consistently shifting and changing? It would be very difficult and would require infinite resources. Therefore, you need to ensure that your market segments are durable and stable in order to maximize your profits.

Responding differently:

For your target market segmentation process to yield maximum benefits you need to check if all of your market segments are responding in the same way to the marketing mix or differently. If the response is the same, then it is likely that they are actually not different segments.

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How can Market Segmentation Help Pharmaceutical Companies?

In order to stay competitive in today’s transforming healthcare environment and engage better with physicians and patients, pharmaceutical companies need to shift from being product-focused to being customer-focused. They need to improve the effectiveness of communications and interactions with customers, including both physicians and patients, to meet objectives of marketing and help promote better health outcomes. Market segmentation can help them doing so in the following ways:

#1: Market segmentation in pharmaceutical marketing provides a better way to understand your target customers. This makes it easy for pharmaceutical companies to create marketing campaigns that really resonate with customers.

#2: Market segmentation provides detailed information on consumer personalities, emotions, values, interests, beliefs, and attitudes. This, in turn, can help pharmaceutical companies to identify their issues correctly and provide the required solutions.

#3: Market segmentation in pharmaceutical marketing is a very powerful tool as it looks more closely at the attitudes and motivations of consumers, providing pharmaceutical companies with important information on what customers want and why they want it.

#4: Psychographic type of market segmentation provides crucial information on the factors driving behavioral change among customers. Messaging based on customer attitudes and motivations are more likely to activate desired behaviors and strengthen the relationship between patient and brand.

#5: Target market segmentation helps pharmaceutical companies to analyze augmenting behavioral and demographic data with key insights on consumer personalities and motivations.

Market Segmentation Strategies: 3 Major Challenges B2B Enterprises Face and Ways to Tackle Them

For business-to-business (B2B) enterprises, market segmentation process can be a powerful tool for tactical and strategic applications under growing pressure to better target prospects and customers. Market segmentation strategies have enjoyed extensive acceptance in the consumer world for decades. However, B2B market segmentation process has weakened due to several factors like marginal technical expertise, limited availability of accurate data, poorly differentiated advertising, and  inability to develop high-quality leads. But with the rising income and middle-class population globally, business to business enterprises can no longer ignore the B2B market segmentation process. Buyers seeking customized products, customer support, and attention and are forming very specialized markets. This scenario was earlier seen in consumer markets only, but it has now developed into the B2B market as well. In fact, market segmentation strategies are something that enterprises in B2B can no longer ignore and expect to achieve positive results. However, there are some critical challenges B2B enterprises face with viable market segmentation process. Are these challenges different from the oneGet More Infos experienced in consumer market segmentation and If yes, then how? what are the possible solutions? In this article, we have tried to answer all such questions.

Challenges in B2B Market Segmentation Strategies 

Challenge #1: Dealing with highly complex B2B markets

Decision making in B2B markets is quite different from decision making in consumer markets. In the B2B market, buying decisions are normally complex with rules that are intertwined and made by different individuals with varying levels of authority while in consumer markets decisions are simply made by one individual or several individuals. Furthermore, potential buyers in B2B markets are oblique, multifaceted, complex and ephemeral. This creates the dilemma in formulating market strategies for B2B enterprises. In simple terms, it is difficult to identify who exactly is the target buyer and who we should segment in the B2B market segmentation process.

Challenge #2: Buyers in B2B market are more rational

Buyers in B2B markets are more rational and therefore, to devise market segmentation strategies here, one needs to pay attention to the need of the business rather than segmenting based on consumer segmentation audiences. This poses the challenge; it becomes important for enterprises to identify what drives customers’ needs and because businesses are not individuals, this is not too easy, yet it is theonly viable option.

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Challenge #3: Complexity of B2B products

In B2B markets, products are usually tailored and that is why making market segmentation strategies a success is very difficult in these markets. Additionally, each product bought by a business is rarely being used in isolation, in most cases, it is only a part of a larger system. This has made it mandatory to include experts in the market segmentation process of these markets which makes the whole process expensive. However, in B2B markets, there is a small section of customers who are important enough that they actually rise behind the setback of B2B market segmentation process. They need to be regarded as a unique segment with their own specific needs. Otherwise, they will walk away, and the firm will incur a huge loss.

Infiniti’s Solutions

With the years of expertise in market intelligence services, Infiniti research help businesses to measure the effectiveness of a marketing campaign, identify the most profitable market segments, analyze changes in market expectations, and also devise value maximization market segmentation strategies to enhance their shares. Also, through market segmentation solutions and need analysis, Infiniti helps businesses to gain actionable insights into expanding, diversifying, and tackling market competition.

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Market Entry Strategies

Customer Segmentation Strategy: 3 Key Challenges That Every Business Faces

A customer segmentation strategy is an invaluable tool for companies seeking to boost market share. However, most companies fail to implement an effective customer segmentation strategy. Modern companies know that they need to meet customer demands, but what they do not know is how to do this. Without precision, rich granularity, dynamism, and the context in the digital age, companies will be unable to meet the changing needs of their customers. Squeezed on one side by growing markets and on the other by merciless price-cutting, many companies are struggling to compete in today’s post-mass-market arena. The result can be undifferentiated offerings that yield no result and fail to please anyone. For businesses looking to improve the cash conversion cycle and bottom-line results, it is inevitable to do an effective customer segmentation analysis. In this article, we have discussed in detail about such challenges and many others that businesses face while devising their customer segmentation strategy and have suggested a few measures to deal with those challenges effectively.

Why IoT in Healthcare is the New Trend_ (4)Challenges in Customer Segmentation Strategy

Challenge #1: Understanding the scope of customer segmentation

For businesses, understanding the scope of segmentation is one of the most difficult challenges while formulating their customer segmentation strategy. If the scope is defined too broadly, it can lead to a very generic segmentation approach. On the other hand, segmentation of a very narrowly defined audience will result in very precise segments, but it would be of minimal relevance for other products or markets. This challenge requires businesses to think about several questions such as

  • What are the different degrees of scope at which currently segmentation is done?
  • How feasible are the variables of segmentation in customer segmentation analysis done for different business groups?
  • If standardizing segmentation across business groups is feasible or not?
  • What can be learnt from the competitors’ customer segmentation strategy?
  • What is their approach to customer segmentation analysis?

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Challenge #2: Comprehending inbound and outbound segmentation

Customer segmentation analysis reveals the fact that many businesses fail to understand the importance of inbound and outbound segmentation. They fail to decide how a customer segmentation strategy can be transitioned over the product life cycle so that there is a consistent view of segments and value propositions. This challenge requires companies to think about a few questions such as:

  • What are the uses of segmentation at the inbound stage?
  • What are the uses of segmentation at the outbound stage?
  • Can both the sets of variables be reconciled?
  • Can there be one “end-to-end” segmentation approach?

Challenge #3: Lack of Differentiation

A customer segmentation analysis asserts the fact that differentiation between the quality of products and their customers is very important for targeting the right customer for the right product. On a product level, without clarity in differentiation, businesses end up investing in products that are not aligned with profitability goals and current market trends. Differentiation facilitates businesses to make more strategic investments in products and customer service.

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Infiniti’s Solution

Infiniti Research, with its years of expertise in customer intelligence solution and customer segmentation analysis, is helping businesses to engage customers with confidence and gain unprecedented clarity on establishing individualized experiences in real-time. Infiniti helps businesses to measure the effectiveness of a marketing campaign in each of the customer segments, identify the most profitable segments of the customer, analyze changes in expectations of the customer, and also formulate value maximization strategies to improve their shares. Additionally, Infiniti helps companies to analyze their customers based on various variables at inbound and outbound stages like end-user behavior, usage scenarios, skill level, audience demography, price sensitivity, channel preference, and goals and outcomes.

Do you want to devise an effective customer segmentation strategy or want to gain more insights into our customer intelligence solutions? Contact us now!

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market segmentation

Ask Me Anything: Everything You Need to Know About Market Segmentation

We often tend to associate psychographics, lifestyles, values, behaviors, and multivariate cluster analysis routines to the term market segmentation. Interestingly, market segmentation is a much broader concept that penetrates into the practice of business throughout the world. In today’s business scenario, where customers expect a high amount of customization and personalization in their goods and services, market segmentation is highly beneficial.Request Proposal

What is market segmentation?

In a nutshell, market segmentation refers to diving and subdividing a company’s target market based on certain commonalities or similarities that they share. It is the process of defining a large homogenous market into clearly identifiable segments having similar needs, wants, or demand characteristics. It determines how the company divides its customers or cohorts into smaller groups based on characteristics including income, age, personality traits, or behavior. These segments can be used to optimize products and advertising to suit the needs of different customers.

What are the key types of market segmentation?

The following are the key types of market segmentation:

Geographic segmentation: One of the most common types of market segmentation. In this method, companies segment the market by attacking a restricted geographic area. Here, different target customer groups are created based on geographical boundaries.

Demographic segmentation: In this type of segmentation, customers are grouped based on various demographic factors. These include age, family size, gender, education, income occupation, and nationality.

Behavioral segmentation: This involves dividing customers based on various decision-making patterns including purchase, consumption, lifestyle, and usage. Segmenting the market based on purchase behavior of the customers enables marketers to develop a more targeted approach.

Psychographic segmentation: This method of segmentation considers psychological aspects of consumer behavior by dividing markets according to personality traits, lifestyle, values, opinions, and interests of consumers. Psychographic segmentation is a legitimate way to segment a market if the proper segmentation variables can be correctly identified.

market segmentation

Gaining a Clearer Picture of Your Market with Market Segmentation

What is market segmentation process?

Market segmentation process essentially involves grouping and sub-grouping large homogenous markets into clearly identifiable segments. The division is made on the basis of similarities in needs, wants, or demand characteristics. The market segmentation process also helps companies concentrate their marketing energy on various pre-defined market segments to gain a competitive advantage within that particular segment. Furthermore, marketers can easily personalize their marketing campaigns with this approach. It also reduces the risk of an unsuccessful or ineffective marketing campaign. Companies must choose the right type of market segmentation process that would best suit their marketing goals.

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Types of market segmentation

Geographic segmentation

This is one of the most common types of market segmentation where companies segment the market by concentrating on various geographic areas. For instance, most restaurant chains are known to undertake their market segmentation process in such a manner that they focus on a limited geographic area to achieve the concentration of force. Moreover, consumer preferences vary from region to region. So, it is important for companies to choose that geographic segment that best aligns with their goals.

Psychographic segmentation

This is a strategy that takes into consideration the lifestyle of people, their activities, interests, as well as opinions to define a market segment. Such types of market segmentation take into consideration the psychographic aspects of the consumer’s buying behavior.  They also consider the psychological aspects of consumer buying. A popular example is fashion brands who market themselves based on the lifestyle and fashion needs of their target customers.

Our experts can help you to measure the effectiveness of a marketing campaign, identify the most profitable market segments, and analyze changes in market expectations. Contact us today!Contact US

Demographic segmentation

This is one of the simplest and most widely used types of market segmentation. In this market segmentation process, the population is divided based on variables such as age, gender, nationality, income, and occupation. The demographic segmentation variables help divide a large population into specific customer groups. One of the industries that makes use of this market segmentation process is the automobile industry. For instance, station wagons are designed to suit families with more number of members. On the other hand, a Ferrari is designed for high-end customers who have an interest in sports cars.

Behavioral segmentation

In this strategy, customers are grouped based on behavior, usage, and decision-making patterns. The products are marketed to target customers based on their behavioral patterns that define their likelihood to buy or not buy a particular product. Customers tend to evaluate several factors before they arrive at a decision about a purchase. Thus, consumer decision making is affected by this behavior and that is exactly how the behavioral segments are targeted.  Retailers make use of behavioral segmentation the most during festive seasons such as Christmas. The buying patterns of customers are higher during these times, prompting marketers to target these customers more and induce maximum sales.

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Building an Effective Market Segmentation Strategy for a Leading Automotive Industry Player

The regulatory and environmental constraints prevalent in the automotive industry are pressurizing leading players to keep abreast with the technological and automotive industry trends to meet the dynamic market requirements Click To Tweet

In the coming years, the automotive industry will play a major role in the ecosystem in enhancing customer value through communication, mobility, and information. With new players increasingly entering this ecosystem; new processes, customer channels, and product life cycles are expected to bring in the next wave of change in the automotive industry. Many such factors have made players in the automotive industry to realize the importance of market segmentation in defining their business strategies.Request Proposal

However, future transformations in the automotive industry will be driven by customer preferences and digital transformations. The automotive industry is greatly affected by the ongoing technological advancements. Powerful technologies are improving customer experiences, with capabilities far beyond the reach of science. As a result, automotive industry players will have to be cost relevant, efficient, and more responsive to the changes in the automotive industry trends to be a part of this change in the coming years.

The Business Challenge

  • The Client: A leading automotive industry player

A leading automotive industry player wanted to build effective marketing segmentation strategies that resonate with each target market segments. To do so, the client was looking at leveraging quantitative and qualitative techniques, under the guidance of a skilled market segmentation expert. Hence the automotive industry client approached Infiniti Research to engage in a market segmentation assessment. Additionally, the client was looking at leveraging our expertise in market segmentation to reach the target audience by devising effective messages and products.

Importance of Market Segmentation

Today, the automobile industry is growing rapidly with more and more new market entrants trying to establish themselves. This has brought about major disruptions in the market, making it difficult for existing players to expand into newer segments. For players to succeed in an increasingly competitive market such as the automotive, it is essential to segment the market into identifiable subgroups and develop precise custom marketing mix for each subgroup to drive growth.

Our ‘Market Segmentation’ solutions empower automotive companies to keep track of automotive industry trends and devise effective strategies to drive growth in each market segment. Moreover, it just doesn’t just deal with improving growth, but also enables automotive industry firms to understand the importance of market segmentation in driving market growth.

Summary of Our Market Segmentation Engagement

Market Segmentation

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Client’s Journey

With the help of our market segmentation solutions, the automotive industry client was able to optimize their acquisition and retention strategies. The solutions offered also assisted them to improve competitiveness and profitability by focusing on service enhancement, product development, and marketing on market segments with the highest potential.

The market segmentation experts at Infiniti conducted a detailed research to help the automotive industry player understand the importance of market segmentation in improving market share. The adopted approach included primary and secondary research methodologies coupled with qualitative and quantitative data collection procedures and automotive industry trends. The experts also reached out to various stakeholders within the automotive industry.

Solution Benefits and the Business Impact

The solution offered by our market segmentation experts helped the automotive industry firm to develop precise strategies to drive growth in each market segment. It also helped them keep abreast with the automotive industry trends and leverage the latest technologies to meet the new market requirements.Get More Info

The Future

The complicated automotive landscape poses several challenges for players looking to establish themselves through market expansions and new market entrants looking to gain a stronger foothold. From this case study, it is notably evident that companies will not sustain the growing competitive pressure if their marketing strategies are dependent upon targeting the entire market segment.

The importance of market segmentation is that it enables organizations to precisely target consumer segments with specific needs. The right approach and ingenuity can provide holistic insights and quality solutions to enable long-term business success. Market segmentation also acts as the key to success by enabling automotive industry players to make better strategic decisions and use their resources more efficiently.

A must-read case study for strategy specialists and decision makers looking to develop an understanding of the importance of market segmentation in the automotive industry.

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benefits of market segmentation

Get Smarter with Market Segmentation: Top 5 Benefits for Your Business

Many successful businesses continue to grow simply because they understand their markets and customers. One of the best techniques businesses can use to better target their customers is market segmentation. Simply put, market segmentation is an identification process that allows businesses to recognize the specific demands of particular customer demographics and use those insights to develop products and services that meet the target users’ demands.

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What is Market Segmentation

Market segmentation is all about grouping your customers into different subsets based on their likes, dislikes, demands, and preferences. One of the main benefits of market segmentation for businesses is that it helps to gain a competitive advantage in the market by analyzing various customer groups and targeting specific products to meet their demands. Other major benefits of market segmentation are that it also simplifies things for the business by giving them clarity on different customer segments and understanding what they expect

Benefits of Market Segmentation

Helps determine market opportunities

Companies can reap the benefits of market segmentation by studying the various groups of customers and their level of satisfaction from the existing offerings. Wherever gaps of dissatisfaction are observed, companies can use this as an opportunity to improve and launch products to meet the requirements of this segment.

Tailor-make marketing initiatives

With the help of market segmentation, companies can understand the varied mindsets of their customers. These benefits of market segmentation help businesses to make the necessary adjustments in their marketing initiative targeted at different groups of customers. It further makes the customers feel that the brand is sensitive to their needs and ultimately gain a sense of belongingness with the brand.

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Product development and design

One of the key benefits of market segmentation is that it helps businesses to get into the minds of their customers and understand their real expectations from the brand. Companies can use market segmentation to identify what is working well for them and what is not in terms of their offerings to the customers. Brands can use this insight to make necessary alterations or additions to their products/services to ensure that customer needs are met efficiently.

Determining product pricing

Other major benefits of market segmentation are its ability to determine product pricing. It is essential for companies to adopt different product pricings for different markets, considering the price sensitivity of the customers in each market. Businesses can use market segmentation to identify the right prices to target new customers in various markets and fix prices for their products/services accordingly. This benefits of market segmentation help companies ensure that their offerings are neither overpriced or underpriced.

Assist in distribution strategies

One of the major benefits of market segmentation for businesses is its ability to aid in the identification of optimum distribution strategies for new products/services. For example, it helps companies identify the right distribution channels and outlets for products that are targeted at various segments of customers.

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