Market segmentation is the process of dividing a broad, heterogeneous market into smaller, more homogeneous groups of consumers — called segments — who share similar needs, characteristics, or behaviors. By identifying these groups, companies can design products, services, and marketing messages that better match what specific customers actually want.
What Is Market Segmentation? Market segmentation is the process of dividing a market into distinct groups of consumers who share common needs, characteristics, or behaviors. Rather than trying to appeal to everyone with a single product and message, segmentation allows companies to focus their resources on specific groups of customers who are most likely to respond to their offer. It is a foundational concept in the international marketing toolkit and a prerequisite for effective targeting and p