Market segmentation is the main mechanism that companies use to target their consumers in an effective manner in order to generate more sales. Firms have been using segmentation by demographics, product categories, etc. for many years, seeing it as the best way to profile their consumers. However, Clayton Christensen, a Harvard Business School professor, argues that this method is quite ineffective.

Christensen argues that there is a difference between something that causes a decision and correlates with a decision. He provided an example, stating that “the fact that you’re 18 to 35 years old with a college degree does not cause you to buy a product, […] It may be correlated with the decision, but it doesn’t cause it.” He later argued that firms need to “crawl into the skin of your (their) consumer” in order to effectively market their products, and continually ask themselves why a consumer made a certain decision over another.

Why would consumers choose a certain product or brand over another at a certain point in time of the day? In relation to my blog post responding to Sharon’s blog post on music streaming platforms, consumers may choose a certain platform over another depending on their mood, whether they want to listen to a playlist while studying or search for music to purchase. The moods and the decisions that consumers make are what companies need to analyze and consider in their marketing.

It was interesting to see Christensen’s point of view on this situation. I was also quite intrigued by the article and the situation it provided with Christensen’s fellow researcher’s and their milkshake situation, along with the fact that 95% of new consumer products fail.

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