Market segmentation is a marketing strategy that involves dividing a broad target market into subgroups of customers, businesses, or entities that share, or are perceived to share, common needs, interests, and priorities, and then designing and implementing strategies to target them. Market segmentation strategies are often used to introduce and further define target customers and provide supporting data for marketing plan elements such as positioning to achieve specific marketing plan objectives. Businesses can develop product differentiation strategies involving specific products or product groups, or an undifferentiated approach, depending on the specific demand and characteristics of the target segment.
Types of Market Segmentation
The following are the most common forms of market segmentation practices.