A segment can be defined by narrowing the set of buyers you are targeting. For example, you might focus the category of “accounting software” to “accounting software for freelancers or lawyers.” You might narrow down “sporting goods” to “sporting goods for babies” or “for dogs” or “for octogenarians.” In general, the segment needs to meet at least two criteria to be worthy of focus: (1) it needs to be big enough that it’s possible to meet the goals of your business, and (2) it needs to have important, specific, unmet needs that are common to the segment.
