Market Segmentation

Market segmentation can be defined as the process of dividing a market into distinct subsets of consumers with common needs or characteristics and selecting one or more segments to target with a distinct marketing mix. It is a marketing term referring to the aggregating of prospective buyers into groups, or segments, that have common needs and respond similarly to a marketing action. Before the widespread acceptance of market segmentation, the prevailing way of doing business with consumers was through mass marketing-that is, offering the same product and marketing mix to all consumers.