Market segmentation

Definition

Market segmentation is the process of dividing a broad consumer or business market, normally consisting of existing and potential customers, into sub-groups of consumers (known as segments) based on some type of shared characteristics. It aims to identify high-yield segments to target marketing efforts and resources efficiently.

Related terms

Target Market:

The specific group of consumers at whom a company aims its products and services.

Demographic Segmentation: The division of a market into segments based on variables such as age, gender, income, education, and occupation.

Psychographic Segmentation:

The process of dividing a market into segments based upon different personality traits, values, attitudes, interests, and lifestyles of consumers