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Speaker 1: Yeah, market segmentation is probably at the very, very center of go-to-market strategy that's successful. So first of all, let's talk about what is a market segment. So a market segment is a group of people that have two things in common. One is a use case. They have a common set of needs that they would be fulfilling through a product like yours or someone else's. And secondly, and this is the one people miss, they talk to each other. So a segment is actually a unit of conversation. And therefore, and the reason why that's so important, is that if you can get your marketing message circulating inside a segment, the segment will circulate it for you. No entrepreneur can afford to go out and pay to address every prospect that they want to sell to. You have to have your community selling for you. But that means you have to be able to model the boundaries of that community and be able to aim your marketing communications activities in a way that that community embraces them and it resonates inside that community. So just to make that point crystal clear. When you talk about your product, you're saying things that apply to many communities. That will not resonate inside a community. When you talk about the specific needs of that community in the language that community talks to itself about, even when you're not talking about you, now you're going to resonate with that community. So the market segmentation in that sense is a communications vehicle to make sure you talk the talk of the customer so that they can then walk the walk with you going forward. That's idea number one. The second thing about market segmentation, and this is kind of a fun experience you have if you've been marketing for a while, fun if you like learning with pain. So the idea is, whenever you think about a segment, people usually draw a circle, and they say, okay, so we're targeting this segment. And then inevitably somebody comes along and says, well, what about this customer who's right at the edge of the circle, almost inside, not quite. And they're, well, okay, we'll bring them in too. And then, well, we'll bring these people in here, and then we'll bring, and pretty soon there's just, there's no integrity to the process at all. So what we've learned about segments is you cannot define a segment by its boundary because wherever you draw a line, there'll be somebody just on the other side of that line who's pretty darn close to the segment, right? So what you do instead is you define segments by their center points. This is where they get this idea called the poster child. The poster child is the perfect exemplar, the ideal representation of the target customer with the compelling reason to buy. And that person, and often you make a, you create something that they call a persona, which would be the embodiment of that target customer. And then you aim all of your marketing communications at that one person because it resonates with all the people around them. And furthermore, you get your engineering and you aim all of your engineering at solving the use case exactly the way that customer would like it solved. And again, that engineering will resonate with people around. And so therefore, you can act on the world in units of use cases and word of mouth groups. And so segmentation is designed to allow you to leverage engineering to the point where the world is on your side. As soon as you go outside the use case and as soon as you go outside the conversation group, the world is no longer working with you. They may not be working against you, but they're not working with you. And as an entrepreneur, at the beginning, you desperately need the world to work with you. Eventually, if you become a global standard, then you don't need conversation groups. Nobody needs it. Google does not need a conversation group. It is a global standard. But most of us are not Google. And so particularly at the beginning, and even at the beginning, Google was not Google. So how do you get started with those early groups?
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