New Product Development Methods:
Segmentation is a research technique designed to identify homogeneous groups of similar consumers (or occasions) from a vast, heterogeneous market population.
DDG develops a basic multidimensional segmentation scheme that groups consumers into discrete groups based on their needs when it comes to the new products…thus “needs-based segmentation.”
Implicit in this approach is that the needs-based nature of the segmentation study itself should reflect the possibilities of what potential new products could be. Key to this is the determination of the needs statements to reflect unmet needs in the market.
