4.4 Segmentation Basics

A key principle is customer segmentation: don’t try to sell to everyone. Divide the market into groups (segments) with shared characteristics (age group, location, hobbies, etc.). Each segment is a niche you can target. For example, a vegan snack company might focus first on health-conscious young adults, not all snackers. As one guide notes, “no single marketing mix can satisfy everyone”, so you pick the most promising segment(s) to serve first.

Understanding your segments is crucial. Segmentation helps focus product design and marketing. It answers: Who exactly is my customer? What problems do they have? How much would they pay? For instance, Netflix initially targeted busy TV viewers willing to pay for streaming convenience (a specific segment). Trying to appeal to “everyone” makes marketing vague. It’s smarter to start with a clear niche and later expand.