Market Segmentation is Key
by O. Bak
I like how you have broken Market Segmentation into the basic question of who my customers are, what are their characteristics, what they want, where to find them, how to reach them and what to say to them. I think this pretty much defines the question of market segmentation and lays out a simple process for going about understanding your target market and creating customers from your audience.
Too many companies engage in sales and marketing without analyzing these questions properly. It is something akin to the business practice of the past where you simply produce a product and people magically appear who are interesting in what you are producing and who purchase your product. Those days are long gone and nowadays you need to face market segmentation questions squarely in the face and answer these questions in as much detail as possible in order to be successful.
In an ideal world, products and services will not even be produced without there first being due diligence being done into these questions of market segmentation. The marketplace is just too risky to spend time and money producing something just to find out that what you have created as an end product is not selling for one reason or another. It may be that the market is already crowded with competition and customers do not see you as being differentiated enough and providing enough additional value for them to purchase from you.
Only after you have ascertained that you can create a product or service that people are willing to buy should you engage the resources in doing so. If this is not possible - for example, you have an existing product or service you want to sell - then at the very least you should take care in carefully analyzing these questions of marketing segmentation in order to create the right sales and marketing strategy. Even if you have the best product or service in the world, you will only have limited success if you are talking to the wrong people in the wrong place with the wrong message, etc.