Behavioral segmentation ranks as the most effective segmentation technique

RESEARCH TRIANGLE PARK, N.C., July 12, 2006 -- Surveyed pharmaceutical companies rank behavioral segmentation as the most effective technique for segmenting target markets according to "Pharmaceutical Market Segmentation: Spending, Strategy and Implementation" (, a new study by business intelligence leader Cutting Edge Information.

While many pharmaceutical companies still use a combination of geography, demographic, and prescription volume data to segment their targets, the more successful market segmenters employ more informative and effective techniques in combination with the simpler forms to dig deeper into their targets' behaviors, attitudes, thought processes and long-term activities. By applying more advanced segmentation techniques, companies not only discover whom to target, but why to target them and how to approach them to achieve maximum results.

Of the various segmentation strategies, participating companies consistently awarded behavioral segmentation with the highest marks for effectiveness. By combining behavioral breakdowns with geographic, prescription and demographic data, companies are able to form targeted marketing plans based on each segment's attributes.

"Pharmaceutical Market Segmentation: Spending, Strategy and Implementation" ( assesses real pharmaceutical companies' market segmentation spending, structures, strategies, staffing and implementation practices. Compiled from interviews and surveys with marketing, market research and sales executives in the pharmaceutical and biotech industries, the report allows drug companies to compare and improve their own market segmentation methodologies.

"This report can help pharmaceutical and biotech companies develop stronger and more effective market segmentation strategies. Our research shows the resources companies dedicate to market segmentation, how real companies grade the various segmentation techniques in terms of their effectiveness, and how companies overcome many of the challenges associated with segmentation implementation," said David Richardson, senior research analyst at Cutting Edge Information. "With sales force expansion slowing tremendously and even reversing course, companies are trying to find more effective ways of reaching their key targets - and influencing their actions. Market segmentation is helping them do this."

According to Richardson, companies need to keep pace with industry leaders in terms of effectively reaching their target markets. Otherwise, brands are likely to get lost in crowded markets.

To view a summary of this report, visit

For more
information about Cutting Edge Information's new report, contact David
Richardson at or 919-433-0216.

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