Economics Financial Markets Questions
Market segmentation is the process of dividing a market into distinct groups or segments based on certain characteristics or criteria. These characteristics can include demographic factors such as age, gender, income, and occupation, as well as psychographic factors such as lifestyle, values, and attitudes. The purpose of market segmentation is to identify and target specific customer groups that have similar needs, preferences, and behaviors.
By segmenting the market, businesses can tailor their marketing strategies and offerings to better meet the unique needs and wants of each segment. This allows companies to effectively allocate their resources, develop targeted advertising campaigns, and create products or services that resonate with specific customer groups. Market segmentation helps businesses maximize their profitability by focusing on the most profitable segments and avoiding wasting resources on less promising ones.