Market segmentation may refer to dividing the general market into different components each of which is represented by individuals with similar tastes, lifestyles, wants, and/or needs. It is sometimes important to segment market into different parts because organizations have limited resources and only certain capabilities. Thus, their goal is to utilize their capabilities and their limited resources to achieve their objective/s in the most efficient manner.

As we study the article, it is clear that the market for art enthusiasts is huge and too big for Primary Information to serve due to its limited resources and human capital. As a result, Primary Information has chosen to target the market segment whose members want to access the works of the artists of yesteryears in an affordable and convenient form, i.e. book. Primary Information consists of two individuals only who can digitize so many books only, thus, they carefully choose the few titles t0 release every year.

As the case demonstrates, a business has to understand the characteristics of its targeted market segment/s in order to serve them effectively. Primary Information learnt that its targeted market segment has low pricing power and cannot afford the scarce titles. As a result, they have come up with a solution that allows them to keep the prices of copyrighted and scarce titles at an affordable level.

Market segmentation enables companies to target groups they can serve most efficiently. It improves their focus because they only have to manage relationship with one or few particular groups. As a result, their productivity and/or profit potential also improves.