Market Segmentation

mass market

one product for many people

target market

the group a company focuses on

market

all the buyers who might want a product

why people segment the market

different people want different things, a company saves money when it focuses on the right group (products and messages can be tailored to fit customers)

market segmentation

dividing the big market into small groups that are alike

behavioral

groups based on actions and buying habits (what you do)

demographic

groups based on facts about people (who you are)

psychographics

groups based on lifestyle, values, and interests (what you care about)

geographic

groups based on location (where you are)

purpose of market segmentation

helps a business choose a target market

niche market

a small, special group with specific needs

segment

a smaller group inside the market