It is dangerous to target market averages because customers can have very different needs. On the other hand, in most markets there are too many customers to think about each individually. The most useful compromise is to identify market segments that group customers that share the same needs. Each of these segments can then be regarded as a separate battlefield.
When is it useful?
How do you do the analysis?
I want to know more
FT Guide to Strategy by Koch – segmentation mincer
How can you adapt this concept?