August 26, 2005

Demystifying Segmentation

How To Segment Your Consumers And Make It Profitable

by Jed Kolko

with Michael E. Gazala

Executive Summary (This is a document excerpt)

Segmenting consumers gives companies the power to rank and target consumers for marketing and product design. To maximize the value of segmentation, companies need to sort through the numerous off-the-shelf and custom segmentation options and pick the one that fits their objectives, budget, and the data they have on hand. Then, to succeed, a segmentation needs to be simple, memorable, and immediately usable. The best segmentations are birthed or blessed by the market research department but embraced and applied companywide.

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