Intro to Market Segmentation
Market segmentation is a fundamental concept in marketing that influences the whole marketing process. Despite its importance though, cases of poor marketing segmentation are encountered frequently and represent the reason why many new launched products fail. Why these things still happen despite many years of experience and research? First of all, the criteria that we use for market segmentation such as social and economic factors or demographics are not very efficient for a precise differentiation. Successful segmentation comes from a detailed understanding of the market so if customers are treated as a homogenous group and the same service or product is offered to all clients without identifying their differing needs and behaviour, the results will be far from the ones expected.