Research, Analysis and Consulting Services

Building Success Using IDC Market Segmentation

IDC can identify and select attractive market segments, identify the factors shaping market attractiveness (markets, customers, competitors, products, etc.), as well as rank market attractiveness for your products and services.

We assess and forecast share potential in key segments. IDC's SegMentorT provides consulting and expert guidance on the decision process for assessing, prioritizing and selecting market segments.

An effective market segmentation will help you focus your sales and marketing resources and run effective campaigns, choose the right marketing mix and construct your selling arguments. It will also help you identify which partners to work with in order to reach your target market.

You will benefit from working with IDC when you plan to:

• introduce new products
• plan sales and marketing campaigns
• review your sales and marketing strategy
• evaluate how a product fits into your portfolio and existing customer base
• evaluate your channel partner strategy
• size of your potential market

Why Use IDC Market Segmentation?

IDC knows your market from a different angle than yourself. We are therefore in an unique position to disscuss and assist you in your market approach.

• Ongoing research IT deployment in the Nordic. We have an unique understanding of the business community that enables us to segment market for new products
• Assess and forecast market development for IT and telecom technologies and services
• We have a widespread network in the ICT industry, enabling us to understand the focus of potential partners and com- petitors, and identify segments for your future success
• We have access to world-wide informa- tion on market segments to use as an experience base

Market Segmentation

Tools and Methodologies

SegMentorT Market Sementation Model
Research, modeling, tool building, and knowledge transfer for assessing and prioritizing market segments.

Score the relative attractiveness of different market segments based upon factors relevant to marketplace, end customers, and the client.

• Market factors: solution spending, rate of growth, account penetration/turnover
• Customer factors: requirements, plans, values, preferences, perceptions
• Competitor factors: strength of competition, segment focus
• Channel or partner factors: opportunities for meaningful partnering
• Other client specific factors

SegMentorT uses research available through methods such as:

Market Assesment & Forecast
IDC's proven methods on market size and forecasting is the basis for many IDC projects.

Leadership Grid
IDC model used for competitive analysis.

Consumer and B2B User Surveys
IDC conducts every year business and consumer user surveys on hot topics.

Examples of Market Segmentation Projects

Identification of a small highly potential market segment
Scope: An IT services vendor was considering launching a new type of service and needed to understand which market segments would be the most attractive for the new service.
Benefits: A market segmentation based on company size and on industry helped identify the target market. Combined with a competitor analysis, the company could focus its launch strategy, and gain a market foothold quickly before addressing a broader market.

Testing a market strategy for a solution
Scope: A telecom operator considered launching a service solution instead of a CPE-based solution. The new concept for service delivery needed to be tested in relation to the potential market.
Benefits: A market segmentation identified the target markets through a size segmentation, but showed however, that the concept required a too complex sales process to be profitable in the most potential market segment. The launch was cancelled.

For more information on this or other IDC research, please contact IDC Nordic Sales or your local IDC representative: