Market Segments

Market segments refer to parts of a large market, subdivided in such a manner that each segment has specific and unique characteristics. As opposed to mass marketing, where firms offer the same product or service to the entire market without any distinction, market segmentation divides the market into categories, each of which has its own special requirements and features. A formal definition by Malcolm McDonald and Ian Dunbar describes market segmentation as “the process of splitting customers, or potential customers, in a market into different groups, or segments, within which customers share a similar level of interest in the same, or comparable, set of needs satisfied by a distinct marketing proposition.” Car manufacturers do not offer the same type of car to every car buyer. ...