Conventional business market segmentation flawed says new report

Using a model of business ICT maturity is better than size and sector approaches for forecasting market size and targeting sales and marketing messages

Technology product and service vendors risk losing out on significant opportunities, and waste of marketing resources, by using conventional approaches to segmenting their business markets, according to a new report from market research consultancy and technology analyst company Innovation Observatory. The report - 'Selling ICT Products and Services to Business: Better Market Segmentation' - shows that a company’s level of ‘ICT maturity’ is a better predictor than size or type of business of whether a company will buy and use a new technology product or service.

Four domains of ICT maturity



Four domains of ICT maturity [Source Innovation Observatory 2013]

Innovation Observatory built a model of ‘information and communication technology maturity’, using 16 indicators in four broad domains, and undertook market research to test how well companies’ ICT maturity level predicts uptake of a range of ICT products and services. The ICT maturity indicator proved a better predictor than size, sector, or any of the other individual indicators tested.

“It’s important to make the ICT maturity idea practical for technology vendors,” says report co-author Danny Dicks, “so we have developed a short set of questions that enables a vendor to flag customers in its database for their level of ICT maturity”. The report also shows how the ICT maturity model is built, and explains how it can be used to build marketing effectiveness, avoid wasting resources, and improve the accuracy of market forecasts. An article on the Innovation Observatory website looks at this in more detail.

The Innovation Observatory report 'Selling ICT PRoducts and Services to Business: Better Market Segmentation' costs GBP495 plus applicable VAT. More information is available at


For more information and interviews contact Danny Dicks on tel: +44 1480 309341

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