What Is Mean By Market Segmentation?

Market segmentation is an important step of marketing plan of a company. It is the process in which the sub grouping of the customers is done on the basis of different characteristics like income, age, sex, needs and demands. There are variables on the basis of characteristics of the people can be matched like demographical features (income, age etc), behavioral features and psychographics of the customers. The companies divide the market into various groups on the basis of their similarities and differences. After the competition of the market segmentation, the company goes for the segment which is highly profitable for the company and that segment is known as target market of the company. Therefore, the concept of market segmentation is very important to determine the target market for the products and services.