Awkward Reality #476

Great product development is always preceded by great market segmentation.

Three conditions must be met: 1) A market segment (cluster of customers with similar needs) is clearly defined. 2) The segment is worth winning in terms of size, growth, profit potential, etc. 3) The segment is winnable, i.e., it’s not defended by a well-entrenched competitor. Overlook these conditions and you’ll waste resources. Great market segmentation is key to successful innovation.

More in 2-minute video at 16. Segment by markets for innovation