Market Segmentation
Dividing a broad market into distinct subgroups with common needs, characteristics, or behaviors.
Also known as: Customer segmentation, Audience segmentation, Market segments
Category: Concepts
Tags: marketing, strategies, businesses, targeting, positioning
Explanation
Market segmentation recognizes that not all customers are the same—different groups have different needs, preferences, and buying behaviors. Common segmentation approaches include: demographic (age, income, education), geographic (location, climate), psychographic (values, lifestyle, personality), and behavioral (usage patterns, loyalty, benefits sought). Effective segmentation creates groups that are measurable, accessible, substantial enough to serve profitably, and actionable for differentiated strategies. For creators and knowledge workers, segmentation helps focus content and offerings—a productivity course for executives differs from one for students. You can't effectively serve everyone; segmentation helps you serve someone really well.
Related Concepts
← Back to all concepts