Are You a Market Segmentation Pro?

Market segmentation refers to the process of subdividing a market into identifiable groups of customers with similar needs, desires, and demand characteristics.

The purpose of market segmentation is to identify customers with similar needs, desires, and demand characteristics, and to tailor marketing efforts to these specific groups.

An example of market segmentation is Nike segmenting the athletic shoe market according to sport and gender, as it believes that people participating in different sports need different things from an athletic shoe, and men and women desire different things from a shoe in terms of styling and construction.