Segmentation Method | A Method for Generating New Business Ideas by Dividing Markets
“I want to find a new market…”
“I want to create business ideas different from competitors…”
In such cases, the original ideation method introduced on this site, the “Segmentation Method”, is useful.
The Segmentation Method is a technique for generating ideas by dividing the market and combining:
“Who (customer segment)” and “What (business segment)”
By combining unrelated customer groups and business formats, it becomes easier to discover completely new business opportunities.
What is the Segmentation Method?
The Segmentation Method is an ideation technique that breaks down business formats and customer groups into smaller segments and generates ideas for each combination.
In typical thinking:
- Bar → Adults
- Cram school → Students
- Luxury restaurant → High-income customers
However, with the Segmentation Method:
“You intentionally combine markets that are not normally matched.”
This helps uncover new business opportunities.
How to Use the Segmentation Method
- Choose the industry you want to explore
- Define multiple business segments
- Define multiple customer segments
- Generate ideas for each combination
- Evaluate feasibility and demand
Below is an example using a free template.
The key point is not to fear “unusual combinations.”
What is a Business Segment?
A business segment refers to:
“How products or services are delivered”
For example, a bar business can expand into:
- Physical store operations
- Delivery services
- Meal kit sales
- Content publishing
- Online courses
- Community management
What is a Customer Segment?
A customer segment refers to:
“Who the product or service is for”
For example:
- Students
- Elderly people
- Parents with children
- Single individuals
- Foreign tourists
- Business owners
Example: Ideation Using a Bar Concept
Let’s use a “bar” as an example.
| Customer Segment | Business Segment | Idea Example |
|---|---|---|
| Parents with children | Bar | Family-friendly bar |
| Minors | Meal kit sales | Bar-style home cooking kit |
| Single individuals | Online streaming | Solo drinking live community stream |
| Elderly people | Delivery service | Healthy snack delivery bar |
By breaking down markets in this way, you can generate business ideas that would not normally come to mind.
Features of the Segmentation Method
- Easier to identify market needs
- Helps differentiate from competitors
- Useful for new business creation
- Supports target analysis
- Enables practical business ideation
- Strengthens marketing thinking
Advantages
- Discover untapped markets
- Easily target niche markets
- Clarify target audiences
- Apply to product planning
- Useful for business model design
- Generate many startup ideas
Recommended For
- Entrepreneurs
- New business planners
- Those seeking differentiation
- Marketing professionals
- Product planners
- Those struggling with idea generation
Unusual Combinations Create New Businesses
In the Segmentation Method:
“Markets that are not normally combined”
are the key focus.
Seemingly contradictory combinations may become new markets with little competition.
Break fixed assumptions and explore segmented markets to generate new business ideas.
Free Template Available
A free PDF template is available to help you immediately apply the Segmentation Method.
Feel free to use it for startup ideas, product planning, and business development.
Segmentation Method Template: Download