Vadim Kotelnikov    

Market Segmentation

Developing Insights Into Customer Needs and Optimizing Your Resources


Business e-Coach     


Vadim Kotelnikov

Love breeds love

love your customers  and

they will love you back  >>>


Two Purposes of Segmentation

  1. Optimizing resources: segmentation as a strategy you use to concentrate, and thus optimize your resources within a overall market.

  2. Understanding customer needs: segmentation as the group of techniques you use as a vendor to segment your target market to develop insights into customer needs.


Two Types of Segmentation

  1. By product

  2. By customer

Market Research

Defining Market Segment & Customer Profile

  • Demographic (education, occupation, income level, age, gender, etc.)

  • Geographic location

  • Business markets (type, size, location, turnover, etc.)

  • Consumer behavior characteristics

Market Segmentation by Consumer Behavior1

  1. Consumer Characteristics: who buys

    • Geographic (e.g., region urban or rural)

    • Demographic (e.g., age, gender, and marital status)

    • Socioeconomic (e.g. income, social class, and occupation)

    • Cultural (e.g., lifestyles and culture)

  2. Consumer responses: what is bought

    • Benefits

    • Occasions (when used)

    • Attitudes (e.g., customer loyalty)

    • Usage frequency (heavy or light)

Knowing Customers

Customer Needs    Top 10 Subconscious Values

What Makes People Buy

Creating Customer Value

Customer Care    Listen To Your Customers  >>  Tips

Customer-focused Culture    Service-Profit Chain

Customer Retention

Marketing Strategy

Synergistic Marketing and Selling    Virtuoso Marketing    4Ps

Creative Marketing    Empathetic Marketing    Sell Benefits

Differentiation Strategy

Differentiating With Different Types of People

Cultural Intelligence

Emotional Marketing


Customer Care    Customer Value Creation    Succeeding Online

Why Market Segmentation?

Divide and conquer!

Successful marketers qualify their current and prospective customers. By doing so, they can better target their value propositions to different customer groups, which results in higher sales.

Value Innovation: Yin-Yang Strategies

Differentiation Strategies

Case Studies Michael Dell

Discovering the Power of Segmentation at the Age of 16

Selling Is Problem Solving

Michael Dell, the Founder of Dell Computer Corporation, discovered the power of market segmentation when he was 16... More

The Starting Point of Your Sustainable, Profitable Growth

Surprise To Win: 3 Strategies

3 Strategies of Market Leaders

Innovative segmentation and resegmentation of your target market is the starting point of your sustainable profitable growth.

Revenue Model

Creating Sustainable Profits: 9 Questions

Any market is the sum of many segments. Each segment fulfills a need, and these needs are constantly changing.

Customer Care

There are many ways to segment a market. You can resegment a market by consumer age, culture, motivation and buying behavior, customer value sets, value proposition, technology, price points, distribution channels, line extensions, and the like. You can also define a new segment, i.e. define a customer need that nobody else has thought of or addressed before. Besides, segmentations is not once and for all, it's a dynamic, ongoing exercise and state of mind.

When you break your market down into segments, you've got a powerful methodology for developing insights into customer needs and generating growth ideas. Think expansively, observe people, learn everything you can about customers' needs, including those that the customers haven't yet identified. Think outside-the-box to generate market stretching concepts that will change the name of the game.

Benefit from Your Competitors

Business e-Coach Business e-Coach

Invented in 2001, Ten3 Business e-Coach has customers all around the World and licensed trainers in 50+ countries.

The Tree of Online Success

 To create greater value for diverse groups of e-coach users, I have gradually built
synergistic network of e-coaching sites. Each site focuses on a chosen set of life values and/or business interests... More

Case Studies Nike

The tool of segmentation transformed Nike. Nike has grown by developing new market segments and moving into adjacent ones. It sliced up the fitness marketplace into many segments capturing nearly half of the U.S. athletic footwear market and expanding around the world... More

Case Studies Dell Computers

An important element of Dell virtual integration with the customers is segmentation by different kinds of customer... More



Customer Care As the Mindset of Business Success

Customer Care is not a technique, it is a mindset. It is a customer-focused corporate mindset  and culture that inspires teams to keep creating and delivering extraordinary customer value and thus helps companies acquire new customers, provide superior customer satisfaction, and build customer loyalty...  More


  1. Marketing Management, Czinkota Kotabe

  2. Every Business is a Growth Business, Ram Charan and Noel. M. Tichy

  3. Direct from Dell, Michael Dell with Catherine Fredman