Low-cost re-segmentation is just what it sounds like – are there customers at the low-end of an existing marketing who will buy “good enough” performance if they could get it at a substantially lower price? If you truly can be a low cost (and profitable) provider, entering existing markets at this end is fun, as incumbent companies tend to abandon low-margin businesses and head up-market.

Over half of startups pursue the hybrid course of attempting to introduce a new product that resegments an existing market.  Re-segmenting an existing market can take two forms:
* a low-cost strategy or 
* a [[niche strategy|Resegment an existing market as a niche player]].
[[Market Segmentation]] is not the same as differentiation. Segmentation means that you’ve picked a clear and distinct spot in customers’ minds that is unique, understandable, and, most important, concerns something they value and want and need now.)


Part of book: [[The Four Steps to the Epiphany]]
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mbi_public
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Sun, 14 Nov 2010 18:00:25 GMT
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dirkjan
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Sun, 14 Nov 2010 18:00:25 GMT
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dirkjan
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dirkjan