Hyper-segmentation – a Caveat

We know from Marketing 101 that Marketing and market segmentation go hand-in-hand. Marketers start by segmenting the market to reach and connect with the customers with relevant products, communication, messages and media mix.  However, if the market segment is too broad, you lose the focus and relevance of the brand. If you cut it too tight, you lose the opportunity, economies of scale and profitability. Thus market segments should be balanced to be relevant and profitable.

Market segmentation is of jugular importance in multicultural marketing and there are 101 ways to segment multicultural markets. Few of these are: culture, language, religion, ethnicity, time in country, country of origin and more, and then sub-segmentation on the basis of age, gender, income, family size and education so on and so forth. This at times lends to hyper-segmentation, which I believe is expensive, time-consuming, prone to pitfalls and ineffective.

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