Market Segmentation
Also: SegmentationCustomer Segmentation
Dividing a market into distinct groups of buyers with shared characteristics so you can target and message each effectively.
Why it matters
Segmentation lets you stop treating a market as one undifferentiated mass and start prioritising the groups worth pursuing. It is the basis for choosing a beachhead, tailoring messaging, and allocating budget. Good segmentation reveals where you can win, not just how the market is shaped.
What good looks like
Useful segments are distinct, reachable, and large enough to matter, and they behave differently enough to justify different treatment. Segmenting for its own sake, slicing the market into groups you then address identically, adds complexity without value.
Related terms
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