What is Market segmentation?
Market segmentation refers to the process of dividing a large and heterogeneous market into smaller subgroups of consumers with similar needs or characteristics. This division helps businesses to better understand their target customers, create more effective marketing strategies, and improve overall profitability.
In essence, market segmentation involves identifying different groups of people within a broader market who share common interests or behaviors. These groups are often based on factors such as age, gender, income level, lifestyle preferences or purchasing habits.
The goal is to identify segments that are most profitable for your business and then design targeted marketing campaigns that speak directly to these specific groups. By doing so, you can increase your chances of success by ensuring that your message resonates with those who are most likely to purchase what you have to offer.