The myth of segmentation

Date of publication: September 15, 2010

Company: Ferro Explore!

Abstract:

Segmentation can be a very powerful tool for aiming marketing to special groups. But is it always the right thing to do? What are its limitations? What is its future? What, if anything, lies beyond segmentation? The aim of this paper is to challenge current thinking about segmentation and to offer alternatives. The author will show that value-based segmentation models will not be the answer to the declining value and predictability of segments. To the contrary, the simplification of these models may only make things worse. Collecting data from marketing experts, corporate research managers, scientists, media buyers, consultants and heads of research companies, the data provides a framework to understand when and under what conditions segmentation models can and can't work, and an insight into what is possible beyond segmentation.

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