What is Market Segmentation?

A definition of Market Segmentation

“Market segmentation is the process of dividing a broad consumer or business market into sub-groups of consumers based on some shared characteristics. Companies use this technique to aim marketing efforts more precisely.”

Market Segmentation in Business Glossary - What is Market Segmentation?

Business Glossary > What is Market Segmentation?


Examples of Market Segmentation in a Sentence:

Market segmentation helps companies target marketing efforts effectively.

Consumer behavior can guide market segmentation strategies.

A good market segmentation plan boosts product sales.

Why is Market Segmentation Important in Business?

Understanding market segmentation is crucial as it allows businesses to tailor their products and marketing strategies to specific audiences. This can increase efficiency and optimize marketing resources by targeting segments most receptive to the product or service.

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Associated Terms

Here are some associated business terms and synonyms for “Market Segmentation”:

  • Market Partitioning
  • Market Division
  • Consumer Segmentation

Nike and Market Segmentation

Nike excels in market segmentation by targeting different consumer segments such as professional athletes, fitness enthusiasts, and casual wearers. Their segmented approach allows them to cater specifically to the needs and preferences of each group.

Final Notes on Market Segmentation

Effective market segmentation requires thorough research to identify and understand different segments. It allows businesses to focus their efforts on groups with the highest potential for revenue generation. Accurate segmentation helps in developing targeted marketing strategies.


This has been a definition of Market Segmentation meaning.

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