Cohorts II: a new approach to market segmentation

Asserts that when faced with complex motives and behavior, humans tend to simplify and generalize in order to make sense of a bewildering set of complexities. Categorical systems are standard tools for boiling down the diversity of human behavior into manageable pockets (market segments) that allow us to predict future behavior. Discusses the merits of this process and also the risks of oversimplification. Examines examples of successful direct marketing to market segments, in particular the Cohorts II system, and makes suggestions as to how best to identify and reach market segments. Concludes by addressing current trends (e.g., using the Internet as a marketing medium) and how these will affect market segmentation.