Market Segmentation (theory)

Market segmentation is the process of dividing a broad consumer or business market into smaller, more defined groups, known as segments. These segments are created based on shared characteristics such as demographics (age, gender, income), behaviors (purchasing habits), or preferences. The goal is to tailor products, services, and marketing strategies to meet the specific needs of each segment, allowing companies to target their efforts more effectively and efficiently. By understanding distinct segments, businesses can improve customer satisfaction and increase sales by delivering the right message to the right audience.