market segmentation



The process of defining and subdividing a large homogenous market into clearly identifiable segments having similar needs, wants, or demand characteristics. Its objective is to design a marketing mix that precisely matches the expectations of customers in the targeted segment.

Few companies are big enough to supply the needs of an entire market; most must breakdown the total demand into segments and choose those that the company is best equipped to handle.

Four basic factors that affect market segmentation are

  1. clear identification of the segment,
  2. measurability of its effective size,
  3. its accessibility through promotional efforts, and
  4. its appropriateness to the policies and resources of the company.

The four basic market segmentation-strategies are based on

  1. behavioral,
  2. demographic,
  3. psychographic, and
  4. geographical differences.

Use market segmentation in a sentence

Related Videos

Mentioned in these terms

Have a question about market segmentation? Ask for help in the
advertise here

Browse by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z