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What Is Market Segmentation?

Dividing the customers into a different set of homogeneous group where the company can straightaway target that similar group as the target market and the potential clients is known as market segmentation. The main aim of segmentation is to match the group of purchasers who can be placed on the same set of necessity and buyers behavior. Market segmentation is being carried out to increase the marketing effectiveness, to develop the marketing activities, also generating the client's satisfaction and generates the savings.

Reasons For Classification Of Market

  • For better understanding of the consumer preferences.
  • Designing a market strategy fitting to the individual market.
  • According to the success in a new market creating a product niche.
  • Avoid wastage of sources such as time and money on untrustworthy markets.
  • Product development to build a product that is more appropriate to a new product.

Types Of Market Segmentation

Market segmentation can be divided into the following factors:

  • Psychographic factors such as values and lifestyle.
  • Demographic factors such as age, sex, income.
  • Behavioral segmentation based on constituents such as attitudes and preferences.
  • Geographic factors such as location-based on entire national territory, particular state or city.

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