Market Segment

A market segment is a specific group of consumers within a larger market who share similar needs, preferences, or characteristics, such as age, location, or buying habits. Businesses identify these segments to target their products or services more effectively, ensuring they meet the unique demands of each group. For example, a car company might create different models for young professionals versus families, focusing on what each group values most. Segmenting the market helps companies allocate resources efficiently and develop tailored marketing strategies, ultimately increasing customer satisfaction and sales.