Market segmentation was invented in the mid-twentieth century as a method to predict different desires within a population emerging from a market with limited choice. Segments are a combination of a demographic description and an estimate of the likelihood of buying a company’s offering. Now that consumers have more choices, it is useful to think of markets consisting of two parts. The first is user terrain which represent users’ aspirations and needs. These are independent of a company’s offering. The second is company territory—a type of offering the company chooses to make to fit one or more terrains.

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