This refers to the technique of breaking down customers and potential customers into groups based on some common characteristic.
Market segmentation enables companies to focus their marketing strategies on a smaller target group, rather than attempting to meet the needs of every kind of customer with a single approach. For example a car hire company will address the needs of the corporate fleet market in a different way to the way it addresses the domestic leisure hire market.
Market segmentation is a term normally found in strategic management.
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