Market segmentation involves dividing a market into distinct groups of with similar .
There are a number of reasons why a business might choose to segment a market - for instance it may help to identify and meet customer needs more effectively, allowing the business to generate greater customer in order to maintain or even increase its market .
Market segmentation benefits customers by creating products that meet their needs more effectively. Customers are more likely to be willing to pay a price for products that do this.
It is pointless identifying and targeting a particular segment within a market unless it is likely to be . In order to be successful, a segment must, therefore, be , sustainable, accessible and unique.
The three main ways of segmenting a market are de, ge and psy segmentation.
Once a market has been segmented, an organisation needs to develop a targeting strategy. There are a number of targeting strategies, including or concentration marketing, where one particularly well-defined segment is targeted; (or undifferentiated) marketing, where a single product is sold to the whole market; and (or selective) marketing, where each segment within the overall market has its own tailored product.
A business may find it useful to consider the way that consumers think and feel about a product in relation to other similar products in the market by drawing up a product map.