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A segment is a group of potential customers with similar characteristics, ability, and motivation to buy the product and at a high price. Successful entrepreneurs focus on the one right customer segment. Trying to market a new product to all potential customer segments is likely to result in a lack of focus and create competitive weakness. An entrepreneur seeking to dominate two segments is likely to be at a disadvantage against others who focus on one segment, all other things being equal. Even Walmart focuses on its key target segment and does not try to be all things to all people. That is because each segment is likely to need a unique combination of product, service, pricing, marketing strategy, and positioning, and it is extremely difficult and expensive to reach and convince different types of segments.
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Dileep Rao (Nothing Ventured, Everything Gained: How Entrepreneurs Create, Control, and Retain Wealth Without Venture Capital)