Market segmentation

Market segmentation is the process of dividing a broad market, normally consisting of existing and potential customers, into subsets of consumers (known as segments), that have, or are perceived to have, common needs, interests, and priorities. The aim of segmentation is to identify high yield segments - that is, those segments that are likely to be the most profitable or that have growth potential - so that these can be selected for special attention (i.e. target markets). There are many ways to segment a market. Business-to-business sellers might segment the market into different types of businesses, or countries. While marketers of consumer goods might segment the market into demographic segments, lifestyle segments, behavioral segments or any other meaningful segment.

Market segmentation

Market segmentation is the process of dividing a broad market, normally consisting of existing and potential customers, into subsets of consumers (known as segments), that have, or are perceived to have, common needs, interests, and priorities. The aim of segmentation is to identify high yield segments - that is, those segments that are likely to be the most profitable or that have growth potential - so that these can be selected for special attention (i.e. target markets). There are many ways to segment a market. Business-to-business sellers might segment the market into different types of businesses, or countries. While marketers of consumer goods might segment the market into demographic segments, lifestyle segments, behavioral segments or any other meaningful segment.