196 • 100 GREAT BUSINESS IDEAS
In practice
- Segmentation needs to be focused: the larger a segment, the
greater the danger that it will lose value. - The key to segmentation lies in highlighting differences and
specifi c characteristics: this requires clarity and insight. - Segmentation should be as simple as possible, avoiding
unnecessary complications and ensuring decisions and views
are rational and clearly communicated. - Segmentation needs certainty. It is tempting to jump to
conclusions or make assumptions about segments based on
your own experience, background, or prejudice. However,
these can be mistaken and a key element in successful
segmentation is analysis: understanding how something is, and
why it is that way.