Market segmentation divides a broad target market into subsets of consumers with common needs. The four main types are demographic, geographic, psychographic, and behavioral segmentation.
What Is Market Segmentation? Market segmentation is the process of dividing a heterogeneous market into smaller, more manageable groups of consumers who share similar characteristics, needs, or behaviors. By targeting specific segments, businesses can design more effective products, services, and marketing campaigns. Rather than trying to appeal to everyone, segmentation allows companies to focus their resources on the customers most likely to buy — increasing efficiency and return on investment