Why is Market segmentation important? Market segmentation is the research that determines how your organization divides its customers or cohort into smaller groups based on characteristics such as, age, income, personality traits, or behavior. The five basic forms of segmentation are demographic (population statistics), geographic (location), psychographic (personality or lifestyle), benefit (product features), and volume (amount purchased). Business markets may segment based on geography, volume, and benefits, just as consumer markets are. These segments can later be used to optimize products and advertising to different customers. The objective of market segmentation is to minimize risk by determining which products have the best chances of gaining a share of a target market and determining the best way to deliver the products to the market. Benefits of the Market Segmentation: Higher Rate of Success, Increases Profitability, Increases Competitiveness, Retention of Customer, Creates and Provides Market Opportunities, Effective Market Campaigning, Wise and Efficient Use of Resources and Higher Customer Satisfaction.

Saket Kumar

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