You are viewing a free preview of this lesson.
Subscribe to unlock all 10 lessons in this course and every other course on LearningBro.
Not all customers are the same. Businesses use market segmentation to divide a market into distinct groups of customers and then target the segments most likely to buy their product or service. This lesson explains how and why businesses segment markets and the benefits and limitations of doing so.
Market segmentation is the process of dividing a market into distinct groups of customers (segments) who share similar characteristics, needs, or behaviours. Each segment can then be targeted with a tailored marketing approach.
| Term | Definition |
|---|---|
| Market segment | A group of customers within a market who share similar characteristics or needs |
| Target market | The specific segment(s) a business aims its products and marketing at |
| Mass market | A very large market with products aimed at a wide range of customers |
| Niche market | A small, specialised segment of a larger market |
Markets can be segmented in several ways:
Subscribe to continue reading
Get full access to this lesson and all 10 lessons in this course.