Divide the market into meaningful and measurable segments according to customers' needs, their past behaviors or their demographic profiles
Determine the profit potential of each segment by analyzing the revenue and cost impacts of serving each segment
Target segments according to their profit potential and the company's ability to serve them in a proprietary way
Invest resources to tailor product, service, marketing and distribution programs to match the needs of each target segment
Measure performance of each segment and adjust the segmentation approach over time as market conditions change decision making throughout the organization