Market Segmentation

Market segmentation is the process of dividing a broad target market into smaller, more specific groups based on certain characteristics or behaviors. It allows companies to better understand and cater to the unique needs and preferences of different customer segments. Just like in a grocery store, where products are organized by category (e.g., dairy, fruits, snacks), market segmentation helps PMs identify and focus on specific customer segments. This enables them to develop products and strategies that are tailored to meet the specific needs and wants of each segment, leading to more effective marketing and higher customer satisfaction.