Customer Segments

Customer segmentation is the practice of dividing a customer base into groups of individuals that are similar in specific ways.

Separate segments if:

- needs require and justify distinct offer
- reached through different channels
- require different types of relationships
- are willing to pay for different aspects
- have different profitability

Customer segment types:

Mass market: one large group comprising only one segment
Niche market: specific, specialized customer group
Segmented: slightly different customer group
Diversified: Multiple unrelated customer group
Multi-sided markets

This blog post is based on my learnings from the course on ‘entrepreneurship’ offered by Maryland Technology Enterprise Institute, University of Maryland through Coursera (2014).