Perceptions persist that using segmentation to solve marketing issues is expensive, requires large samples and produces results that are difficult to interpret and use. These perceptions are myths. In this column, I'll explode all of these myths and show that segmentation can be inexpensive, easy to understand and apply, and highly useful even when applied to a small group of people.

Large-scale segmentation studies are obviously needed in order to quantify the sizes of the segments in a population or to develop finely tuned statistical models for database marketing. These issues, however, are statistical requirements based on sampling theory. If the need is to generate hypotheses and gain new insights, small sample segmentation is highly effective. By dividing small groups of people, products, markets and other areas of interest, new insights and opportunities emerge.

Register or login for access to this item and much more

All Information Management content is archived after seven days.

Community members receive:
  • All recent and archived articles
  • Conference offers and updates
  • A full menu of enewsletter options
  • Web seminars, white papers, ebooks

Don't have an account? Register for Free Unlimited Access