Taking a global view of the market runs the risk of overlooking or inadequately addressing the needs and preferences of market players. The rationale behind any market segmentation is to identify subgroups within a market for the purpose of defining and analysing the target audience. 

The persons in one group should be as similar as possible, while those in different groups should be as dissimilar as possible. Segmentation approaches are the object of continuous development. At first, segmentations are based solely on demographic characteristics, followed by lifestyle typologies. However, to view the market as a whole, it is necessary to take a more differentiated approach and to include further aspects such as value orientation, personal needs but also specific knowledge. 

Quantitative designs incorporating multivariate analysis lay the groundwork. To define the characteristics of the segments in depth, it can be helpful to carve out the insights beforehand in explorations or during in-home visits. 

The complexity of an overall market is reduced allowing for a better grasp of the market; it is possible to adopt a targeted marketing and sales strategy as well as better gauge the prospects of customized propositions.