“Know your target market” is one of the mantras of modern business. It is shorthand for saying that its a good idea to design your product and communications so that they can be found by, and appeal to, the customers that you think are the best prospects.
If you are an established product working out your target market can be as simple as profiling your customers and can be done using predictive modeling. However, if you have a new product, or, are struggling and suspect you are targeting the wrong target market, you need to segment your market prior to deciding who to target.
Market segmentation is the term that marketers use for breaking a market up into parts and developing different strategies for the different segments. Almost all businesses segment their markets. Nevertheless, there are two quite different logics of segmentation and it is important to have a clear view of which you are trying to employ. [Read more…]