The consistent changes in the #businessecosystem owing on one end to the rise in digitization, and on the other to Covid 19, have led many entrepreneurs to question the effectiveness and impact of #marketsegmentation in business.

Market segmentation is defined as the method of dividing a #targetmarket into specific categories, eg: demographics, income, location, interest etc. While this has been beneficial in identifying effective marketing #strategies, attracting and converting #leads, differentiating #brands and providing focus, the current ecosystem is changing the status quo.

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As a matter of fact, the business ecosystem is forcing marketers to see targets as specific individuals whose needs change every year, rather than a group of people with common needs, that last several years.

To illustrate this further, consider Company A that sells high end cosmetics products.

Company A segmented Mother x and Y as ''Cash Cow'' for their consistent purchases. Based on an initial research conducted by the firm, Company A affirms that both mothers earn similar salaries, have enrolled their kids in the same school, and live pretty much similar lifestyles.

In 2021, however, Mother X lost her husband to Covid 19, and became more concerned about cost cutting and savings. The reality of becoming the family's sole provider forced her to make changes in her lifestyles, and cutting her cosmetic budget topped the list.

While Mother Y's needs remained the same, Mother X's have changed. If Company A continues to use the same market segment and strategy to promote its cosmetic products to both Mothers, the result will no longer be the same.

To maximize sales, as an entrepreneur, how often do you engage your existing customers, and conduct an #AudienceAnalysis? Has your firm invested in an #AudienceInsightTool to collect #data and communicate with your customer in a personalized way? If not, what is stopping you?

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