Market Segmentation Definition
Market segmentation is the process of dividing a market into distinct groups of consumers with different needs, characteristics or behaviors. Segmentation allows businesses to create targeted marketing campaigns that are more likely to resonate with certain groups of consumers.
There are many different ways to segment a market, but some common methods include grouping consumers by demographics (age, gender, income, etc.), geographic location (country, region, city), or psychographics (lifestyle, personality, interests). Businesses can also segment their customers by behavior, such as purchase history or brand loyalty.
Once a business has identified its target market segments, it can develop marketing strategies and messages that are tailored to each group. This type of personalized marketing is more likely to result in conversions than a one-size-fits-all approach.