Jeffrey Moore (Geoffrey Moore) explain segmentation

Only few companies are big enough tosupply the needs of an entire market.Even the large ones must break downthe total demand into segments and choose those that...

Apr 07,2020 | Greenle

Only few companies are big enough tosupply the needs of an entire market.Even the large ones must break downthe total demand into segments and choose those that the company'sbest equipped to handle.Market segmentation is marketingstrategy that involves dividing a broad target market into subsets of consumerswho have common needs, wants,demand, or characteristics.You'll be developing a marketingstrategy that targets the individuals inyour chosen segment.You can learn the basics of it inthe book that become the bible forstartups 25 years ago.And it's still valid.Crossing The Chasm, by Geoffrey Moore.Let's meet Geoffrey Moore himselfto learn what he has to say about market segmentation. Hi, so my name's Geoffrey Moore.I live in Silicon Valley.I'm a business author, I'm a memberof a venture capital firm, and I consult andadvise technology companies, largely.Entrepreneurs tend to havevisions of global domination, and in that model you want tosegment the whole world.Because eventually the whole worldis going to buy your product,it's just a question ofwho's going to buy it first.So, I think the whole worldthing is a great fantasy and it keeps you going at night andon the weekends, but eventually if you're going toactually light the fire.You know when you light a fire,you don't want to run a match up and down under a very big log,you're just going to burn your fingers.What you want to do when you lighta fire is you get some kindling and then you get some crumpled up paper,and you get the match.And you hold the match in one and only one place until itstarts to burst into flame.

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Then the flame can grow.But so, the key thing withthe segmentation at the beginning foran entrepreneur is, where are yougoing to hold the match and how long are you going to holdit in place until it lights?And sometimes you put it,holding in the wrong place.You're holding it under a brick andbricks do not burn, right?Okay.So, you've got to move the match but,what you don't want to do is justcontinually moving it back and forth.And entrepreneurs who are in love withtheir product have a very tough timewith this problem.Entrepreneurs who are in love with theircustomer, do not have this problem. Okay, so how do we start this fire?Let's explore the differenttypes of segmentation.

Sources of article:
https://www.youtube.com/watch?v=wFOOaEMrHq4

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