Chapter 18. Avoid the most common segmentation mistake

Segmentation is a cornerstone of sound marketing and brand building. Segmentation is the forming of groups (of consumers) based on some criteria or characteristics. The usefulness of segmentation ties directly to how these groups are formed. Formed appropriately, segments can be a powerful organizing principle for brand development. Used inappropriately, segmentation can weaken your understanding of the market you compete in. The most common mistake is to segment based on demographics (age, income, education, marital status, and so on). Brand managers will say things like “our segment is young, upscale men” or “we’ve divided the market into three categories—low income, moderate income, and ...

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