Market segmentation is a process of dividing a larger market into smaller groups of consumers with similar needs or characteristics. It is a crucial aspect of product management as it helps businesses to identify and target specific customer groups with tailored marketing strategies.
There are several types of market segmentation that businesses can use to divide their target market:
Market segmentation offers several benefits to businesses:
While market segmentation offers several benefits, there are also some challenges that businesses may face:
Market segmentation is a crucial aspect of product management that helps businesses to identify and target specific customer groups with tailored marketing strategies. By dividing the market into smaller groups, businesses can create targeted marketing campaigns that are more effective in reaching specific customer groups, leading to increased sales, improved customer satisfaction, and a competitive advantage. However, market segmentation can also be costly, complex, and have its limitations, and businesses need to carefully consider these factors when implementing market segmentation strategies.