Questions and Answers
What is the difference between a Market Segment Designation and a Market Segment Definition?
The Market Segment Designation is the short, simple name you use to refer to the segment. We like to keep the designation much shorter and simpler than the definition because you are likely to refer to each market segment repeatedly in the course of your strategic planning. The market Segment definition should, in contrast, identify a very specific set of characteristics that describe the market and include sufficient detail to describe precisely the business you are actively pursuing today. Be careful not to broaden your definition to include customers you would like to pursue or those you think you could pursue. These should only be considered as potential new opportunities. An example of a segment designation might be 'Large Local Builders' while the corresponding definition might be 'Builders of single family homes, typically over $300,000 in price, with more than 100 employees and located within 150 miles of Sacramento'. It is critical to have a good Market Segment Definition since it establishes proper focus and determines what is analyzed in subsequent parts of the Strategic Planning process.
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