| 21 December 2009
When it comes to market segmentation there is a plethora of content on the web. The purpose of this article is to provide a basic understanding of what market segmentation is. In general, market segmentation is profiling. It is the profiling of your prospects and customers so that you can understand them. The reason why you want to understand them is because you value them. You value them because they are people who you provide a need or desire for. An exchange occurs only after you show that you value your prospects and customers and that your product or service is valuable to them. This is its basic purpose and the reason why market segmentation is an important part of marketing.
It wouldn’t be wise to open a snow-mobile retail outlet in the Sahara or market extra-sweet chocolate treats to members of a diabetic society yet organizations around the globe make expensive mistakes like this every day. Market segmentation ensures that the product or service that you’re offering is of value to the prospect or customer on the receiving end of that opportunity. Some common ways to segment are geographically, demographically, pyschographically (personality, values, etc.) and by behavior.
