What is market segmentation?
Well, market segmentation is a systematic categorization
of potential markets for your idea.
Essentially, it is a description of multiple groups
of target customers, groups that are homogeneous and distinct.
Done right, market segmentation will
reveal important differences between seemingly similar
groups of target customers.
The understanding of those differences
will make you much more successful
in deciding what market to pursue first, why, and how.
Ultimately, market segmentation leads you
on a path to figuring out who your persona is,
the persona around whom you'll build
a strong and sustainable business.
The fun part about market segmentation
is that you get to wear multiple hats.
You'll have to be creative.
You'll have to be analytical.
But most importantly, you'll have
to go out and talk to as many perspective target customers
as possible.
So let's talk about how you do market segmentation
and use the following example.