CONCORD, Mass., July 24, 2007 — A new national study conducted by the Gantry Group, LLC reveals that providers of technology-based products and services who implement formal research-based market segmentation studies experience higher revenues (58%) and increased market share (50%) due to their improved ability to align product functionality, price, bundling and value proposition to targeted markets. The study also shows that companies associate poor understanding of market segments with a diminished ability to make a compelling business case to prospective customers -- which leads to lower revenues. While 35% of study respondents report that the segmentation of their market segmentation is validated through the application of formal research, 41% rely solely on their own personal assessments of market segmentation based upon ad hoc feedback from their existing customer bases.

The study reached executives from 78 technology solution companies who directly influence and determine their companies’ marketing initiatives through their leadership roles. The majority of the respondents are senior executives: 69% hold positions of VP or higher within their organizations. Half of the respondents (50%) report being in marketing or sales roles, while 23% hold product management positions.

Further key study findings include:

• 57% of respondents believe formal research-based market segmentation is very valuable, of which the majority have already adopted this as a best business practice.
• 54% of respondents consider research-based market segmentation to impact marketing, sales, product development and product management functions
• 70% of respondents see market segmentation as a means to help them develop more effective market positioning and value proposition.
• Study respondents believe their markets are segmented across customer size (50%), technology stage (48%), and customer level of access to competitive products (41%).
• The single largest risk of not conducting formal market segmentation is reduction in revenues (32%); 25% report the risk of inability to accurately prioritize and compare market opportunities.
• 69% of those who are not currently conducting formal research-based market segmentation say they would need to understand the economic justification as a motivation to do so.

Consistent with past surveys of technology solution providers, most respondents examine their own customer base and internal “sense” of the market’s segmentation. However unless the customer base is representative of the market as a whole, this is not an accurate means for segmentation analysis. Those 35% of respondents who have formalized research-based segmentation report the greatest value and are most aware of the cross-functional impact on product development, as well as marketing and sales.

For the past decade, Gantry Group has created business success for clients with technology-enabled solutions. Gantry Group uses its customized market research services help companies develop strategies to build and sell offerings matched to what their target markets truly value. Gantry Group delivers to corporate marketers the firsthand market insights and predictive measurement capabilities that allow them to make informed decisions as they plan ahead and prepare for future market trends and needs.

Through Gantry Group’s market intelligence, market research, and ROI/TCO benchmarking service suites, more than 450 client companies have identified, positioned and quantified their value within the marketplace. Additional information about Gantry Group can be found at www.gantrygroup.com.

For study results, please call Gantry Group at 978-371-7557 ext 18, or go to http://www.gantrygroup.com/research/category.cfm?cat_id=59 to download directly.

Entire Contents, Copyright © 2007 Gantry Group LLC All Rights Reserved. References to any of the contents in this press release must include Gantry Group copyrights and citation.

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