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What is market segmentation?

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Quick answer

Market segmentation is dividing a broad market into smaller groups of customers with shared needs or traits. By targeting each segment with tailored messages and products, businesses market more effectively than treating everyone the same. It splits a market into groups with shared traits or needs.

Key things to understand

  1. It splits a market into groups with shared traits or needs.
  2. Common bases: demographics, behavior, location, interests.
  3. Each segment gets tailored products and messaging.
  4. It makes marketing more relevant and efficient.

People also ask

What is market segmentation?
Dividing a market into smaller groups of similar customers so you can target each more effectively.
Why is market segmentation useful?
Tailoring offers and messages to specific groups boosts relevance, response, and efficiency.
What are types of market segmentation?
Demographic, geographic, behavioral, and psychographic (lifestyle and values) segmentation.