What is market segmentation?

Business & Management
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What is market segmentation ?

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Marketing segmentation is the process of dividing your market into smaller categories. In this segmentation, you prepare separate categories of your customers based on their interests, demographics, needs, and location. The act of segmenting your market gives you detailed insights into your customers. You can identify what is needed in your market segment and then decide how your product will satisfy those needs.

With segmentation of the market, the companies can comprehend how the market will respond in certain situations. For example, the responses to a survey conducted in a particular segment of customers a company can decode if their product will receive a positive response from them.