Segmentation and market research?

Question

1) Is it possible for a small businessto oversegment its market?

2) How would that be dangerous?

3) What do you think is the biggest limitation for small businesses conducting market research?

Answer 1

1) It all depends on the size of your niche and the reach your company has (e.g. clicks vs bricks)
2) Don't over-think it, but regularly evaluate whether your segments are (a) valid, and (b) appropriate. YOu may find that several segments can be combined into one.
3) Biggest limitation is the resources (time & money).

Answer 2

1. Certainly, yes.

2. For market research: too little data per segment. For production: too much customization to justify added cost.

3. Two things: 1. Too little data overall and 2. Too little business volume to justify hiring a specialist.

Answer 3

Yes....micro segments could drive up the cost of each customized product or service.

Re: Research....poor questioning and sampling. For example...Ford asked Edsel buyers if they were satisfied with the car....they were but there were not enough of them....the rejectors were never asked "whatt is lacking from the Edsel?"

Answer 4

1) Yes.

2) You custom-produce instead of mass-producing, thereby increasing your costs.

3) Lack of professional background in marketing (samples are too small, understanding of statistics is limited, etc.)