Market Segmentation

Market segmentation is the process of dividing a broad market into smaller, specific groups of consumers who share similar characteristics or needs. This allows businesses to tailor their products and marketing strategies to better meet the preferences of each group. For example, a company selling athletic shoes might segment the market by factors such as age, activity level, or style preference. By understanding these segments, companies can create targeted marketing campaigns and product offerings that resonate more effectively with their intended audiences, ultimately leading to increased customer satisfaction and sales.