Customer Segmentation

Customer segmentation is the process of dividing a market into groups with similar needs, motivations and behaviours into which selective investment can be made, creating a sustainable advantage. 

Thus, the purpose of customer segmentation is to identify current and future potential customers who share similar characteristics and behaviours, so that specific promotional activity can be targeted toward this group.

Pangaea brings an integrated step-by-step approach to pharmaceutical customer segmentation.  

1. Environmental Analysis: we start by gaining a detailed understanding of the promoted product and the competitive environment in which it competes.
   
   
2. Segment Identification: the next step is gaining an understanding of the different ways that decisions are currently made by the customers (physicians, pharmacists, patients). The outcome from this step is a Decision Map, which demonstrates the different ways that customers make their buying decision in this specific Market. You might want to introduce demographics as a way to identify which segment is currently important and which segment will be important in the future agreed
   
   
3. Segment Motivation:  this step is designed to gain an insight into the reasons why specific customer segments get information, create networks and make buying decisions. This step further divides the segments into more homogenous groupings
   
   
4. Internal Company Evaluation: here we evaluate the objectives of the company so that there is agreement on short and long term expectations.  In many cases this discussion involves a review of the company product portfolio, as well as the current brand strategies. 
   
   
5. Segmentation Scenario Analysis:  different segmentation options are evaluated to determine which options provide the greatest probability of achieving stated objectives: whether they be sales, return on investment or development of relationship.
   
   
6. Targeting:  it is at this point that the decision to focus on one or more segments is taken.  This is the critical decision because it will drive the development of all other strategic and tactical decisions for the brand.
   

To facilitate the above process Pangaea uses a variety of different research and analytical tools including: demographic databases, physician prescribing patterns, primary market research, and competitive intelligence gathering.  Additionally, Pangaea harnesses the expertise which exists in your sales force and current reporting system. By leveraging the Panoptics system to integrate data, we are able to provide visual maps which help to both identify geographical clusters, as well as to provide direction for targeting and implementation.

To find out more about how Pangaea can assist with customer segmentation, targeting, and the importance of differentiation contact:
Joseph Knottat jknott@pangaea-consultants.com

If your company needs training on the importance of segmentation and targeting, Pangaea can help.  Click here to view an outline of the Livon®: Cultivating a Market Niche business simulation which Pangaea offers through our partnership with Celemi® a worldwide leader in learning.