Physician Segmentation Research: Understanding Physician Needs to Maximize Marketing Effectiveness

A physician segmentation strategy should be applied when you believe not all practitioners are the same, or should be treated as such. In order to be a genuine market segment, the target population within each category will respond differently to variations in the marketing mix, compared with those in other segments. Segmentation research can partition markets into groups of potential customers based upon common characteristics that drive prescribing behavior.

Segmentation studies are used to address:

• Strategic Planning: to improve competitive positioning based upon a clear understanding of segment characteristics
• Marketing Mix: to develop and execute marketing programs tailored for each physician segment
• Message Development: to craft differentiated, highly targeted communications that resonate more strongly with targeted physicians
• Resource Allocation: to realize economies by prioritizing financial and human capital based upon a segment's value to the business

A segmentation study's value ultimately depends upon how useful it is when implemented. Using a customized approach which clearly specifies how research findings will be implemented from the project's onset will ensure that appropriate analytics are applied and actionable results delivered. Many research companies make the mistake of focusing on how to create the segments first, only to produce inadequate results.

Once the business need for implementing a segmentation strategy is established, the research instrument is developed, data is collected, and the analysis begins. At this stage, the researcher should prepare topline results for the key stakeholders of the research to gain their buy-in to the strategy. They should offer to educate the management team on the data's implications and their recommended methodology to complete the project.

Interpreting and finalizing the segmentation solution occurs next. During this phase, the researcher should utilize all relevant data sources, including secondary data, and then apply appropriate analytic techniques. Areas addressed should include physicians' prescribing behaviors, demographics, attitudes and lifestyle factors—all of which affect prescribing activity. The resulting market segments are then populated through qualitative profiling and officially named, culminating in the implementation of your program.

Following this approach will ensure that your segmentation study is a sound investment that reveals the most effective ways to reach your target segments.