I think this article really highlighted the importance of critically thinking about what market segments a company should pursue. Without a focused plan to go after those customers that can make the most impact company, assets will be spent inefficiently.
The article made an important point that many times we have a tendency to segment based on demographic factors without truly understanding the motivations behind the actions. The insight about over-the-counter painkillers and effectiveness versus less side effects was particularly interesting. While these two segments did end up corresponding to age demographics (young vs. old), the important insight is that people responded to product characteristics. This disproves that purchase behavior is generated age. This motivation can easily be translated into marketing and advertising and will most likely morph into more effective products and campaigns.
The article highlights the importance of targeting. Clearly there might be under served markets based on the segmentation analysis, but some of these markets might not be profitable to the company. Therefore you wouldn't want to pursue them.
The ultimate goal of a company is to convince consumers their product is the best product to meet their needs, budget and other considerations. Positioning is important in this pursuit. The article's emphasis on differentiation from competitors is important. If a company can't provide a unique value proposition to a consumer, then it will not be able to survive in the long term. It is also important that this value proposition can be defended in the long term. Otherwise, competitors will come into that space and squeeze the company's margins and profitability.
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