Market Segmentation – A Quick Method

Looking for a fast and visual way to bring segmentation to life? In this concise viewpoint, Professor Malcolm McDonald outlines a quick and effective method for building needs-based segments using two key motivators. Perfect for workshops, team strategy sessions, or rapid insight development, this technique forms the first step in Malcolm’s acclaimed Profitable Growth Process™.

What It Is

A simple 3-step segmentation method using two buyer motivations (e.g. service level, product range) to divide the market into four distinct needs-based segments — each with different expectations and profit potential.

Quick Steps

  1. Identify the two most important motivators behind customer choice (not hygiene factors)
  2. Estimate what % of the market falls into low vs. high needs for each motivator
  3. Cross the axes to create four needs clusters — then label them!

Example

  • Motivator 1: Level of support (20% low / 80% high)
  • Motivator 2: Product range (40% small / 60% large)

Multiply the axes and create four segments:

  • 56% – High support, broad range (e.g. “Prima Donnas”)
  • 24% – High support, small range (e.g. “Dictators”)
  • 14% – Low support, broad range (e.g. “Drag Queens”)
  • 6% – Low support, small range (e.g. “Easily Satisfied”)

How to Use It

  • Tailor pricing, service and communication to each segment
  • Repeat the method on the largest group if more detail is needed
  • Turn assumptions into action: align product, pricing, sales and messaging

Included in the PDF

  • Worked examples using A4 copier paper market
  • Tips on selecting motivators and naming clusters
  • Final page overview of Malcolm’s full segmentation and growth strategy services

Quote

“Try this with your team — it will surprise you how quickly it turns fuzzy market data into actionable clarity.” – Professor Malcolm McDonald

Download the Full Viewpoint

This summary captures the method — the full PDF includes diagrams, naming examples, and real-world application tips.

📥 Download the full PDF