Marketing segmentation is the key tool to sell products. No market is whole nor are they the same. Using effective market segmentation allows companies to find people who actually want to buy their products. More importantly it helps companies identify the customers to avoid.
Not one company has two customers exactly the same. It is just not possible. Every buyer, although influenced by similar marketing messages, will purchase the products for a different reason. Not one buyer is driven to a purchase for the same reason. This is why they need to be segmented and grouped. Segmentation allows the identification of the ones who might purchase while the others should be left behind.
Internally in companies there is an age old struggle between engineers and product designers. This gets exacerbated when it moves to marketing people. Engineers always want to talk in depth about the function, features and what the product does. The marketeers armed with their research tend to focus on the form, the style and the benefits.
In the 2004 -05 the Japanese engineers in Sony Ericsson were provided with market research on what the customers wanted from a phone. The customer saw the phone as a fashion accessory, they wanted colours, they wanted dynamic brightness, they wanted bright. Japanese product engineers refused to move off the colour pallet of “black”. The phone in their mind was an industrial tool for communication or business. Not a bright fashion accessory. Then the Iphone arrived with its bright colours and the rest is history.
Today markets are more segmented than ever before. Under the force, the rise the effervescence of Digital platforms for communications, E-commerce, and the flow of information from social networks the landscape has been atomised. There are more shifts unpredictable swings which make accurate sales targeting unpredictable.
The speed with which audiences receive information, consume information, check what the crowd think of the information, has made versatile fluctuations and shifts. Another reason why segmentation is important in the process of product selling and revenue generation.