Clayton M. Christensen and Michael E. Raynor

Only if managers define market segments that correspond to the circumstances in which customers find themselves when making purchasing decisions can they accurately theorize which products will connect with their customers. We believe that customer segmentation (or categorization) should be based on the notion that customers “hire” products to do specific “jobs.” Doing so will help managers segment their markets to mirror the way their customers experience life. This approach can also uncover opportunities for disruptive innovation.

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