What is Market Segmentation?

Market Segmentation is the process of dividing a broad target market into smaller, more homogeneous segments based on certain characteristics or variables. It involves identifying distinct groups of customers who share similar needs, preferences, behaviours, or other relevant attributes. The purpose of market segmentation is to enable businesses to develop more targeted marketing strategies and effectively meet the diverse needs of different customer segments. Market Segmentation recognises that not all customers are the same and that a one-size-fits-all approach may not be the most effective way to reach and engage with customers. By segmenting the market, businesses can tailor their marketing efforts to specific groups, allowing for more precise messaging, product positioning, and customer communication.

“Market Segmentation is the sub-dividing of market into homogeneous subsets of customers, where any subset may conceivably be selected as a market target to be reaached with a distinct marketing mix.” – Philip Kotler

“Market Segments are grouping of customers according to such characteristics as income, age, degree of urbanisation, rare of ethic classification, geographic location or edcation.” – Cundiff & Still

Market Segmentation refers to the process of dividing a target market into smaller groups with comparable characteristics, such as age, income, personality traits, behaviour, interests, demands, or geography. Knowing the market segmentation allows marketers to target their product, sales, and marketing strategies better.

In this article, we will understand the different aspects, levels, and patterns of market segmentation.