So what is market segmentation? In other words – the target audience for a product.
Imagine you have a pastry shop and you sell cakes. Your target audience is children, mothers. In short, people with family values. And that’s when you decide to publicize, your target audience, you choose single diabetics. How much sales will you get? I don’t think the results will please you. But, even worse, when you are a single diabetic who understands little about family values. Therefore, confectionery is definitely not the best option for you. Switch your attention to a cafe or bar that suits you best in status.
Or another situation.
For example, a furniture company decides to launch a new model of beds. Their target audience needs a bed, 1.8×2 meters, which is lined with inexpensive eco-leather, but with a good orthopedic mattress and oak legs, the frame can be made of chipboard. You, as a manufacturer, should understand this, but there are those who are starting to make a bed of their own interest. Imagine that we are now on such a board of directors. The head of the company puts forward the idea that it is necessary to launch a new double bed, and he sees its upholstery made of expensive, crocodile skin, well, because he just liked it, he even found something funny in it. Here, his deputy says that you need to make it 1.6×2 meters and add mahogany materials. You can also save on mattresses, but add good bedding to the kit as a “cool” marketing move! The title of this picture, “The circus is gone – the clowns stayed.” I bet people who do such things are unlikely to have even one successful project in their arsenal.
Let’s end the paragraph with a short sentence that will explain its essence: imagine if ZARA started to occupy the niche of Louis Vuitton and would start doing much more luxurious or pontifical things, name them as you like, which are not worth their CA. I think it would be a very loud fuck up.
So, before you invest in a product, conduct a detailed market analysis, ask yourself what exactly the market needs today. If you are just starting out in business, the best analysis would be to ask yourself, what would I spend my last money on, what kind of product would it be? If you are a manager or marketer of a successful company and you were given your first project, analyze the client of your company, what are his values and only then make a new product that satisfies the desires of your target audience!