Market Segmentation-Value Matrix

The Market Segmentation-Value Matrix is a tool used to segment a market into four distinct categories based on a combination of value and segmentation. It helps businesses identify which segments of their market are most valuable and which segments are most likely to be profitable.

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

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

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

  1. High Value, High Segmentation: Segments of the market that are highly valuable and highly segmented, such as luxury products, high-end services, and niche markets.
  2. Low Value, High Segmentation: Segments of the market that are not as valuable but are still highly segmented, such as low-cost products, low-end services, and seasonal markets.
  3. High Value, Low Segmentation: Segments of the market that are highly valuable but not as segmented, such as mass-market products, mid-range services, and regional markets.
  4. Low Value, Low Segmentation: Segments of the market that are the least valuable and least segmented, such as commodity products, low-cost services, and global markets.

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

The Market Segmentation-Value Matrix is a tool used to segment a market into four distinct categories based on a combination of value and segmentation. It helps businesses identify which segments of their market are most valuable and which segments are most likely to be profitable. The matrix is composed of four quadrants, each representing a different segment of the market.

The top-left quadrant is labeled 'High Value, High Segmentation'. This quadrant represents the most valuable and segmented segments of the market. These segments are usually the most profitable and have the highest potential for growth. Examples of segments in this quadrant include luxury products, high-end services, and niche markets.

The top-right quadrant is labeled 'Low Value, High Segmentation'. This quadrant represents segments of the market that are not as valuable but are still highly segmented. These segments are usually less profitable and have lower potential for growth. Examples of segments in this quadrant include low-cost products, low-end services, and seasonal markets.

The bottom-left quadrant is labeled 'High Value, Low Segmentation'. This quadrant represents segments of the market that are highly valuable but not as segmented. These segments are usually more profitable and have higher potential for growth. Examples of segments in this quadrant include mass-market products, mid-range services, and regional markets.

The bottom-right quadrant is labeled 'Low Value, Low Segmentation'. This quadrant represents the least valuable and least segmented segments of the market. These segments are usually the least profitable and have the lowest potential for growth. Examples of segments in this quadrant include commodity products, low-cost services, and global markets.


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What templates are related to Market Segmentation-Value Matrix?

The following templates can also be categorized as business, marketing and are therefore related to Market Segmentation-Value 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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