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
- Identify the two most important motivators behind customer choice (not hygiene factors)
- Estimate what % of the market falls into low vs. high needs for each motivator
- 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.