In the past we have segmented the market based on product rather than the solution, then measured market share by that product. This also involved the benchmark of that products features against its competitors. Companies then started adding on by offering more features rather than adding value. In this situation you are solving the wrong problem.
Segmenting by customers doesn’t tend to work either. In an increasing sophisticated environment, slicing up by gender, age and location or by business size has become as useful as the world having one telephone. Customers increasingly don’t conform to the average customer in the segments you have had in the past.
New ways of marketing and the onslaught of social media throws a new perspective into the mix. We have become too good at creating products that don’t help customers do a job. Companies need to go back to the drawing board and look at what their customers are experiencing and what problems they need solving.
If you want to to build a brand that means something to customers, you need to create products and services that mean something to customers. Markets are no longer driven by typical customer segments but by small groups of people with niche common interests and connections. Traditional demographics such as gender, age and geographic location have taken a step back and we need to be segmenting on the ‘experience’ customers want.
