Benefits of market segmentation

What is market segmentation?

Market segmentation is when a business splits potential customers into groups based on shared characteristics.

These characteristics include location, age, income, credit rating, usage rates, or buying habits. Market segmentation can help inform and create a marketing plan that meets the needs of a target audience instead of creating a one-size-fits-all marketing strategy.

Given that marketing, advertising, publicity, and promotion have begun to focus more on personalized marketing and retargeting, market segmentation is key to marketing success.

Market segmentation vs customer segmentation

In your research into market segmentation, you may come across a similar term: customer segmentation.

Types of market segmentation

The main difference between these approaches to segmentation is the following:

• Market segmentation divides the market of potential customers into segments.

• Customer segmentation divides your existing customer base into segments.

Read more:What Is Customer Segmentation? + How to Reach C

what is market segmentation in marketing

what are the steps involved in market segmentation