Market segmentation involves dividing a target market into distinct groups or segments based on shared characteristics or behaviors. The goal is to understand the different needs, preferences, and behaviors of various customer groups to design targeted marketing strategies and product offerings.
There are several types of market segmentation, including:
- Demographic Segmentation: Dividing the market based on demographics such as age, gender, income, education, and family size.
- Psychographic Segmentation: Categorizing customers based on their attitudes, lifestyles, interests, and values.
- Behavioral Segmentation: Segmenting customers based on their purchasing habits, brand loyalty, usage frequency, and benefits sought.
- Geographic Segmentation: Dividing the market by geographic factors such as location, climate, or population density.
- This information helps businesses tailor their marketing messages, develop products that cater to specific needs, and allocate resources more efficiently.