Impact Pricing Blogcast: How to Define Powerful Market Segments
Dec 26, 2025
Uncover the secrets to powerful market segmentation in this insightful discussion. Discover common pitfalls companies face when identifying segments, often mistaking features for true distinctions. Learn how to define customer problems that drive product value. Mark illustrates the concept using LinkedIn segments and Uber's varied services. He emphasizes that segmentation should focus on customer needs rather than features, guiding effective pricing strategies. Get ready to redefine how you approach your market!
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Foundational Problems Define Segments
- Different foundational problems define different market segments, not product versions or tiers.
- Same core problem solved more deeply creates value tiers within a single segment.
LinkedIn Illustrates True Segmentation
- LinkedIn serves distinct segments like recruiters, salespeople, and job seekers who hire the platform for different jobs.
- LinkedIn then offers good-better-best tiers inside each segment to capture varying willingness to pay.
Uber Shows Company-Level Segments vs. Versions
- Uber groups different foundational problems at the company level: moving people, meals, and parcels are distinct segments.
- Within rides, options like X, Comfort, and XL are situational versions, not a value ladder.