How can you create a product to satisfy the market when you don't know the market?
You can't.
The best way to meet consumer demand is to go to the consumer directly and get those demands first hand.
Market segmentation isn't an abstract analytic tool that categorizes customers and potential customers into unusable categories. On the contrary. Market segmentation provides an active source of rich actionable data that can be critical in helping design exactly the product or service offering your target market is looking for.
More than that. Market segmentation can help your firm not only better understand your current markets. It can help you find and even create new ones. It can point you to the best test markets to use in the development process. It can select niche segments that can give a new product or service fresh areas to penetrate. It can find and study market reactions not just to the product but to the product promotions and how it affects the company's brand.
To create products that sell, you have to know the customers who do the buying.
That's what market segmentation is all about.
