Market Segmentation
01 Definition
Market Segmentation meaning: Dividing a broad market into smaller groups with shared needs or traits.
Market segmentation splits a market into groups defined by traits such as demographics, behavior, needs, or geography. Marketers use it to focus resources and tailor offers to the most promising groups. Segments must be measurable and reachable, or they offer little practical value.
Also called
Why it matters
How Market Segmentation fits the work
Segmentation helps a company focus limited budget on the groups most likely to respond, instead of sending one generic message to an entire diverse market.
In context
A fitness app segmented its market into beginners, busy parents, and competitive athletes, then designed different onboarding flows and offers for each group.
Practical note
Over segmenting creates groups too small to serve profitably. Each segment should be large enough, distinct enough, and reachable through real channels to justify separate effort.