Segmenting your customers

- If you've been following along with the…earlier videos in this course, at this point…of the marketing planning process,…we've completed the analysis phase.…We know a lot about our customers.…We've estimated our market…and where the most potential is.…We understand our competition…and we know how our products and…services perform versus theirs.…It's time to start the strategic…phase of our planning.…To create a marketing strategy,…you have to perform three steps.…First is segmentation, where you break…your customers into homogeneous groups.…

Next is targeting, where you decide…which of these segments to go after.…And finally is positioning,…where you determine how you want…your customers to think about…your products versus the competition,…so they're more likely to buy yours.…Let's focus first on segmentation.…Breaking customers into groups helps you…be efficient with your marketing resources.…It helps you focus only on…the most relevant customers,…and avoid wasting time and money…on the less relevant.…

There are four ways to segment a market.…