Segmenting markets involves a number of steps. First, the full range of values and beliefs that are held about the product category and about product-category usage within the total target-market environment is identified. Aggregated attitudes in this regard are statistically assessed to identify clusters of values and beliefs that have the potential for a meaningful segment structure. These belief clusters are further reduced to "belief sets" to the extent that they achieve the key criteria of effective market segmentation:

• they result in market segments that are maximally homogeneous with each group having a distinguishing "belief set",

• they result in market segments that are maximally heterogeneous with the "belief set" of each group being maximally different from all other groups.

By knowing what the unique values and beliefs are that characterize a particular market segment and by understanding why these values and beliefs are held (through subsequent segment profiling of distinguishing psychographics and socio-demographics), we are able to understand product usage behaviour. With this understanding comes the ability to modify product usage behaviour to the client's competitive advantage.

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