• However good your product or service is, the simple truth is that no-one will buy it if they don't want it or believe they don't need it. And you won't persuade anyone that they want or need to buy what you're offering unless you clearly understand what it is your customers really want.
• Knowing and understanding customer needs is at the centre of every successful business, whether it sells directly to individuals or other businesses. Once you have this knowledge, you can use it to persuade potential and existing customers that buying from you is in their best interests.

Customer segmentation is the practice of dividing a customer base into groups of individuals that are similar in specific ways relevant to marketing, such as age, gender, interests and spending habits.

Trying to target your business to ”everybody” is a big risk. If you target a specific group, you will be able to develop your business to meet the needs of that specific group, and will thus be more attractive and effective.

Look at the market segmentation matrix again.

For the restaurant market, is there a restaurant that is a ”family restaurant”? Is there another one that is more exclusive, and that target people with high incomes? Is there one that is the go-to place for teenagers?

Now, think about your market. What are the different groups of people that your competitors are trying to attract?