Tipping Point author Malcolm Gladwell discusses the roots of market segmentation, and also argues that it makes consumers happier and the market more vibrant.
But really, is segmentation really the key to happiness? I mean....
Do these make people happier?
Is a product successful simply because it sells?
At least in terms of food, it seems that there are a few established brands, and then everything else just turns over because people like something new. Grocery stores are the great example of the ridiculousness of American consumerism.
So what is he really talking about?
He gets into his main point at the 10:00 mark in the video, the 3 ideas that changed marketing:
1. Don't ask what people want, they don't really know...or at least can't articulate it.
2. HORIZONTAL SEGMENTATION - Markets are now divided into segments of 10-20% each, or less. Big companies might be able to be successful across many segments. Small companies have to find their best segments and maximize their value.
3. The end of the 'Platonic Ideal'. It's not about being 'the best' it's about people liking you the best. And it's difficult to discern what people will like.
I definitely agree with those 3 main points.
ReplyDelete1.)It's never a good idea to ask people what they want and make your business decisions based on their answers.
2.) Big companies have the resources to go after several smaller markets whereas smaller companies simply don't.
3.)Reminds me of what I learned in Dr. Christy's Creative Strategy class... it's not about being right, it's about being more right (or winning, something along those lines).