Market Segmentation-Performance Matrix

The Market Segmentation-Performance Matrix is a 2x2 matrix used to evaluate the performance of a company's market segments. It helps to identify which segments are performing well and which ones need improvement.

At a very high level, the Market Segmentation-Performance Matrix is used in the context of business, marketing, finance.

Market Segmentation-Performance Matrix quadrant descriptions, including examples
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What is the Market Segmentation-Performance Matrix?

A visual explanation is shown in the image above. The Market Segmentation-Performance Matrix can be described as a matrix with the following quadrants:

  1. High Market Share & High Growth Rate: Segments with a high market share and a high growth rate are performing well and should be targeted for further investment and growth. Example: Fast-growing segment of luxury cars.
  2. High Market Share & Low Growth Rate: Segments with a high market share but a low growth rate are mature and should be managed to maintain their market share. Example: Established segment of mid-range cars.
  3. Low Market Share & High Growth Rate: Segments with a low market share but a high growth rate are emerging and should be targeted for investment and growth. Example: Fast-growing segment of electric cars.
  4. Low Market Share & Low Growth Rate: Segments with a low market share and a low growth rate are underperforming and should be managed to improve their performance. Example: Struggling segment of luxury SUVs.

What is the purpose of the Market Segmentation-Performance Matrix?

The Market Segmentation-Performance Matrix is a 2x2 matrix used to evaluate the performance of a company's market segments. It helps to identify which segments are performing well and which ones need improvement. The matrix is divided into four quadrants, each representing a different combination of market segment performance.

The top-left quadrant represents segments that have a high market share and a high growth rate. These segments are performing well and should be targeted for further investment and growth. The top-right quadrant represents segments with a high market share but a low growth rate. These segments are mature and should be managed to maintain their market share. The bottom-left quadrant represents segments with a low market share but a high growth rate. These segments are emerging and should be targeted for investment and growth. The bottom-right quadrant represents segments with a low market share and a low growth rate. These segments are underperforming and should be managed to improve their performance.


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What templates are related to Market Segmentation-Performance Matrix?

The following templates can also be categorized as business, marketing, finance and are therefore related to Market Segmentation-Performance Matrix: Effort Impact Matrix, Gap Analysis Matrix, Growth Share Matrix, Kraljic Matrix, Outsourcing Matrix, Quadrant Analysis, Risk Analysis Matrix, Risk Value Matrix. You can browse them using the menu above.

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