Market segmentation is the process of dividing a large market into groups with similar needs and wants. The principle of market segmentation is to achieve competitive advantage and better performance; companies must: identify market needs, specific plan needs, and create a unique business for each purpose. From a business perspective, segmentation is based on the assumption that the heterogeneity of demand allows demand to be segmented into segments with different needs. In business, market segmentation is the process of dividing customers or businesses (usually existing and potential customers) into groups of users (called segments) based on common characteristics. When segmenting businesses, researchers often look for characteristics such as common needs, common interests, similar lifestyles, or similar demographics. Overall goal of segmentation is to identify highmargin segments, that is, segments that may be most profitable or have growth potential, so that these segments can be selected for specialized care. Many different methods have been defined for market segmentation. Business (B2B) salespeople may divide the business into different industries or countries, while consumer (B2C) salespeople may divide the business by demographics such as lifestyle, behavior, or social business.Market segmentation aims not only to identify the most profitable markets but also to create profiles of key segments to better understand their needs and purchases. Information obtained from segmentation analysis is used to support the development and planning of marketing strategies. Many entrepreneurs use the STP approach. Segmentation → Targeting → Positioning provides structure for marketing planning. That is, market segments select one or more target segments and position products or services to be relevant to the target market.Market segmentation is a key cum primary processwhich helps a business to grow itself at a comparatively higher rate than any other competitor.
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