Market segmentation means dividing the whole market into various segments based on age, gender, population etc. Consumer's demand, properties, needs are classified under a particular segment. Components of a segment are of similar nature so that it will be easier for the company to sell their product more effectively.Companies can target segments more accurately and design their positioning accordingly after the selection of segments. It gives us a much more addressable audience rather than giving random groups of people.
Types of market segmentation
Slicing the market based on demographics like age, gender, income, family members, educational qualification etc.
2. Psychographics Segmentation
Segmentation done based on personality of people, their characteristics, and their lifestyle etc.
When companies divide the market based on the customer behaviour.
When a population is divided on the basis on geographies i.e. country, state, city, village, region etc.