‹ All Growth Forge tools

Market Segmentation

Market Segmentation is the Growth Forge® Software tool for building a structured, sizeable map of your market. You break a total addressable market into a hierarchy of segments, by region, industry, customer type, or any dimension, each with its own size, growth, and uncertainty, so the rest of your model has a defensible market base to build on.

who it's for

New-product or business project leaders and startup founders scoping an opportunity or defining their addressable market, anyone who needs a credible, sizeable view of who's in the market rather than a single headline number.

Growth Forge Market Segmentation: The segment tree in table view with sizes, shares, and evidence
Why it matters

Benefits

  • Turn a vague "big market" into a structured, sizeable hierarchy you can defend.
  • Capture uncertainty and growth on every segment, so your sizing reflects what you actually know.
  • Build the shared market base that feeds your revenue forecast and customer-needs work.
  • Stress-test which segments matter with Monte Carlo simulation and sensitivity analysis.
What it does

Features

  • Build a hierarchical market tree top-down or bottom-up, in consistent units across the whole tree.
  • Enter each segment by value or as a share of its parent; subdivide as deeply as you need.
  • Attach uncertainty ranges, growth rates, and evidence levels to every segment.
  • Bulk-import segmentation data from an Excel template; export analytic data and tables as CSV; copy charts to the clipboard.
  • Treemap and hierarchical-tree visualizations, plus Monte Carlo and sensitivity analysis.

How it works

  1. Set your total market. Create the root, choose a tree direction, and enter the starting size and units.
  2. Choose a way to divide it. Add a segmentation method (e.g. "By Region") and pick how children are entered, by value or by share.
  3. Add your segments. Enter each segment's size or share; subdivide further where it helps.
  4. Add what you know. Set uncertainty ranges, growth rates, and evidence on each segment.
  5. (Optional) Import. Bulk-load segments from the Excel template.
  6. Test it. Run Monte Carlo and sensitivity analysis, tighten the assumptions that matter most, then use these segments in the Market Sizing Tool.

FAQs

What is Market Segmentation in Growth Forge?

It's the tool for building a hierarchical, sizeable map of your addressable market. You subdivide a total market into segments, by any dimension, with size, growth, and uncertainty on each, so your downstream forecast and needs work rest on a defensible market base rather than one headline figure.

How do I estimate my addressable market or build a TAM/SAM/SOM model?

Build a segment tree either top-down (start from a total market and divide) or bottom-up (build up from segment sizes), attach ranges and growth to each segment, and Growth Forge rolls it up with uncertainty intact. Those segments then feed the Market Sizing Tool, where the TAM → serviceable market → Share of Market funnel and revenue forecast are computed.

Should I build top-down or bottom-up?

Either works, and the tool keeps the math consistent in both directions. Top-down is faster when you have a credible market total; bottom-up is stronger when you have real data on specific segments.

How does it handle uncertainty?

Every segment carries low / expected / high ranges and optional growth rates, which flow into Monte Carlo simulation and a sensitivity view, so you see the range of market sizes and which segment assumptions matter most.

Can I import my own data or export the results?

Yes, import segmentation data from your own sources via a provided spreadsheet template, export the resulting analytic data and tables as CSV, and copy charts straight to the clipboard for presentations and documents.

What does it connect to?

It's the market base for the Market Sizing Tool and shares customer identity with Jobs to Be Done and Competitive Analysis; its assumptions also contribute evidence to your Strategy Evaluation.

Package Availability
Enterprise PortfolioSmall Business PortfolioAdvanced Business Modeling

Ready to transform your new product and business innovation process?

Join companies worldwide using Growth Forge to build better strategies and drive new business growth results.