Segmentation Definition
In marketing, segmentation is the process of dividing a target market into smaller, more manageable groups. Segmentation allows businesses to better target their products or services to specific groups of consumers who are more likely to purchase them.
There are many different ways to segment a market, but the most common method is to use demographic criteria such as age, gender, income, or location. Other methods of segmentation include psychographic (lifestyle), behavioral (usage pattern), and benefit (the reason why someone would purchase a product or service).
The benefits of market segmentation include improved targeting of marketing efforts, which can lead to increased sales and decreased marketing costs. Segmentation can also help businesses better understand their customers and develop more personalized relationships with them.
