Market Segmentation

Market segmentation is based on the idea that consumers are different. Because consumers are different it is not possible to satisfy the needs of all customers with one product. Rather, specific products need to be developed, specific advertising messages communicated, specific prices set, and specific distribution channels used to cater for differences among consumers. This is market segmentation: the customization of the marketing mix to best satisfy the needs of consumers who share similar needs (or have other key features in common that are critical to the purchase of the product an organization is selling). Groups of consumers who are similar in such a way are referred to as market segments. Optimally, consumers within a market segment are very similar to each other and very ...