The above graphic is called the Customer Quadrant Determinant and is used by businesses in planning how to assess and attack adjacent markets, introducing new products, or launching a new promotional campaign, among other things.

The #1 quadrant is the easiest to market to, which is selling a current/existing product/service to a current customer base.

The #2 quadrant is next, and a bit more difficult to attack. That is, selling a new product/service to a current customer base.

#3 is again more difficult. Marketing an existing product/service to a new customer base.

And lastly, the #4 quadrant – the most difficult and expensive. Marketing a new product/service to a new customer base.

Revenue growth and profitability is commensurate as the quadrant number increases. Each quadrant demands a different marketing and sales approach. To be successful and a different level of funding and staff to succeed. 

Use this method to segment your markets and customers and remember the harder the market the more expensive it will be to attack; however, in the long-run it will be just as hard for your competitors and they may not have the funds or determination to attack it and then you have that market to yourself.

The quadrant can be used as a guide for marketing in a forward and deliberate fashion. It is easy to use and implement with the result of improving your brand and market-reach.