31. The Law of Segmentation

Companies must target specific customer groups or market segments if they are to achieve significant sales.

We are rapidly reaching the end of the mass market. Today, the most successful companies are those that have been able to identify specific segments of the marketplace for which they design individualized products and services to satisfy special needs and tastes.

The first corollary of the Law of Segmentation is Many companies fail because they are targeting the wrong market with the wrong product in the wrong way.

Many companies start off targeting their advertising and sales at a particular market segment, only to find that the products are being purchased by a different market segment altogether. Light ...

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