Segmenting market is to segment the customer and organizations so that each segments needs can be recognized and fulfilled properly. The advantage is that there is no need of selling the product to all the segments of market infact a particular segment can be targeted according to their requirements.
Market segmentation is done in two steps:
- First step is to identify and classify people into homogeneous groupings which are called segments.
- Second step is finding out which of these segments are target markets.