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"Market Segmentation" is one of the most
fundamental concepts of marketing
and is the key
to a successful business performance.
It is fairly obvious
that there is no such thing
as an average customer
or average consumer.
It's a bit like saying,
"My head is in the oven
and my feet are in the fridge,
so on average,
I'm quite comfortable."
Let us also get rid
of the nonsensical myths about
such as the a priori nonsense
about socioeconomics, demographics,
geodemographics and the like.
Let me explain,
such as A, B, C1, C2, D, and E
are useful generic descriptions,
which I shall refer to later,
but in themselves, they can only be useful
at a very general level.
For example, the Archbishop of Canterbury
and Boy George are both As
because of their spending power,
but their behavior
is almost certainly very different.
Likewise, demographics such as young women
between the ages of 18 and 24
can only ever be useful as a very high
and general indication
of patterns of behavior
because it is clear that not all
18 to 24-year-olds behave the same.
In a similar way,
such as ACORN
which stands for a classification
of residential neighborhoods,
whilst useful for indicating
very likely general patterns
of spending power, do not reveal
the absurd assumption
that everyone in one street
drives the same car,
reads the same newspapers,
eats the same food, etcetera.
Yet real segmentation
remains the most difficult
of all marketing methodologies
which is why very few organizations
do it properly.
Indeed, a recent
Harvard Business Review article
revealed that in 2006,
the main reason for the failure
of 30,000 new product launches
in the United States of America
was inadequate market segmentation.
So this will set out,
in a very straightforward way,
what market segmentation is
and how it can be done properly.