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  • Writer's picturePeak Frameworks Team

What is Market Planning (Market Research, Segmentation, and Examples)

If you're interested in breaking into finance, check out our Private Equity Course and Investment Banking Course, which help thousands of candidates land top jobs every year.

Market Planning Explained

Market Planning is a strategic tool that helps organizations anticipate and respond to the changing dynamics of their target markets.

Market Research

Before making any financial moves or investment decisions, a deep understanding of the market landscape is crucial. Tools like Surveys, Focus Groups, and SWOT Analysis can provide insights into consumer behaviors, preferences, and market dynamics.

For instance, when JPMorgan wanted to venture into a new financial product offering, they conducted extensive market research to understand the potential market and competition. Their research ensured that they didn't just offer another product but provided a solution that met the actual needs of their clients.

Market planning Process
Source: Business Study Notes

Market Segmentation

Segmenting the market aids in narrowing down the vast universe into manageable sections. There are several approaches:

  • Demographic: Based on age, gender, education, etc.

  • Geographic: Region-specific targeting.

  • Psychographic: Based on lifestyle, values, and more.

  • Behavioral: Spending habits, brand loyalty, etc.

Remember when Goldman Sachs catered its services to tech startups in Silicon Valley, understanding their unique geographic and behavioral segment needs? That’s market segmentation at work.

Target Market Selection

After segmentation, it's essential to prioritize which segments align best with your offerings. Consider profitability, market growth, and the competitive landscape. For example, when BlackRock focused on sustainable investing, they targeted a specific segment of investors interested in long-term, environmentally-friendly investments.

Setting Market Objectives and Goals

marketing Objectives
Source: Marketing91

Defining Clear Objectives

Every strategy begins with clear objectives. Whether quantitative, like reaching a specific AUM, or qualitative, like enhancing brand reputation, they should be SMART: Specific, Measurable, Achievable, Relevant, and Time-bound.

Aligning Objectives with Overall Corporate Strategy

Remember, your market planning objectives should resonate with your company’s mission and vision. A shining example is Morgan Stanley, which has its objectives in line with global wealth management, ensuring that its market planning is consistent with the broader organizational goals.

Crafting the Market Strategy

Positioning for Success

In the finance world, how your firm is perceived can impact client trust. Tools like Positioning Maps and the Unique Selling Proposition (USP) can carve out your niche. For instance, Vanguard uses its USP of low-cost funds to position itself uniquely in a crowded market.

4 Ps of Marketing in the Financial Sector

  • Product (or Service): Ensure your financial offerings resonate with your target market's needs.

  • Price: Adopt pricing strategies that offer value. For instance, fintech startups like Robinhood disrupted the market with their zero-commission trading.

  • Place: Think about where your customers access your services, be they physical locations or online platforms.

  • Promotion: From webinars to whitepapers, ensure that your promotional strategies communicate your value proposition.

Action Plan and Implementation

Allocating Resources

A well-allocated budget is the backbone of a successful strategy. Weigh the cost against the potential returns. Utilize tools like ROI predictions and cost-benefit analysis.

Timeline and Milestones

Setting clear deadlines and using tools like Gantt charts ensures consistent progress.

If you're eyeing a career in this sector or wish to refine your skills, and would like to break into finance, check out our Private Equity Course and Investment Banking Course, which help thousands of candidates land top jobs every year.

Monitoring and Evaluating the Market Plan

Key Performance Indicators (KPIs)

Key Performance Indicators (KPIs) are measurable values that indicate the effectiveness of an organization in achieving its key business objectives. In the realm of market planning, KPIs serve as a compass, providing clarity on how well (or poorly) a strategy is performing. They are the pulse-check of a market plan, allowing firms to gauge their ongoing market strategies against established benchmarks.

How to Develop KPI's
Source: OnStrategy

Relevant KPIs for Finance Professionals

Different sectors have unique KPIs that are relevant to their operations, and the finance sector is no exception. Some pivotal KPIs include:

  • Assets Under Management (AUM) Growth: Reflects the total market value of assets a financial institution manages on behalf of clients. A growing AUM typically indicates a firm's ability to generate returns and instill client trust.

  • Client Acquisition Costs (CAC): This represents the cost associated with acquiring a new client. A lower CAC suggests that the firm has an effective marketing and sales strategy.

  • Deal Closure Rate: Especially for investment bankers, the number of deals closed versus those initiated can indicate effectiveness in negotiations and client relations.

  • Net Promoter Score (NPS): A metric used to measure client satisfaction and loyalty. A high NPS score can signify strong client relationships and satisfaction.

Making Adjustments

The finance sector, with its intricacies and interlinked global economies, is in perpetual flux. External factors like political events, technological innovations, or global pandemics can significantly impact market dynamics. Hence, the rigidity of sticking to a plan, no matter how meticulously crafted, can be detrimental.

Flexibility allows companies to pivot their strategies based on real-time data and insights, ensuring they remain relevant and competitive.

Case Study: BlackRock's Pivotal Market Strategy

One of the companies that exemplifies the essence of flexibility in market planning is BlackRock. In recent years, as the trend of sustainable investing gained traction, BlackRock recognized a shifting paradigm. Instead of adhering to their traditional investment models, they adapted by emphasizing ESG (Environmental, Social, and governance) investments.

CEO Larry Fink's annual letters to CEOs started stressing the importance of purpose in companies, highlighting that profits and purpose are inextricably linked. By 2020, BlackRock committed to making sustainability its new standard for investing, which entails exiting investments that pose a high sustainability risk, like thermal coal.

Their shift was not merely a marketing ploy but a redefinition of an investment strategy based on market insights and future projections.


In the ever-evolving world of finance, market planning remains a constant need. It's not just about predicting the market but molding your strategies to ride the waves of change.

1 Comment

Dec 26, 2023

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