Market Segmentation
Why market segmentation is a crucial aspect of marketing and how to properly focus attention on customers, territories and products to gain a competitive advantage.
Market segmentation is an extremely important aspect of marketing, and the wrong questions are often asked about this issue. Many theorists argue that the most important thing is to segment the market around customers; others, captivated by the idea of modern technologies, hold that the market should be segmented around technology; a third group believes segmentation should follow different types of products and services; a fourth group says we should focus on regions, and so on.
These are all the wrong questions, for the simple reason that in proper market segmentation all of these coexist simultaneously. So, in business it is of essential importance for us to treat every segment as a source of revenue. This means we are dealing with similar customers, specific customers located in a given territory, who consume, spend on and order certain types of products, use certain services, and for whom we create an appropriate programme.
Market segmentation enables us to focus our attention correctly and direct our efforts, which means being closer to current and potential customers, and responding to their needs, problems and expectations faster than our competition. In this way we can set up and establish marketing strategies that provide an adequate competitive advantage.
Watch the video: Market Segmentation
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