If you read anything about marketing, you know the basic philosophy of all marketing is market segmentation.
What’s market segmentation? It’s the way you analyse your market to understand how different groups of potential customers “tick”. Why is it important? So that you can focus your attention on the group or groups of potential customers who are most attracted to your offerings, and find them in the places they gather, whether virtually or physically.
Let’s take an example. Say you sell luxury fashion items. Who is your market? You might say men and women who like to stay fashionable.
Okay that’s great but that’s still a large slice of the wider market – are you sure all of them would be attracted to your offering? If you segmented that market you might be able to come up with at least two segments – men who like to stay fashionable and women who stay fashionable. If you then looked at the characteristics of the first, men who like to stay fashionable, you might find that say as a group their majority age group is between 18 and 25 and they don’t spend their money on fashionable fashion but rather trendy tech. Whereas the group of women are between the ages of 17 and 38, buy fashion, and often buy for fashion their partners. So who’s your better target market?