Can You Explain The Term Market Segmentation?

Whenever a firm develops a certain product or service, it does so for a specific type of customers because the firm’s offering may not have the same value for all the people. The firm’s customers have different demographic characteristics based on which the customers can be divided into certain groups. This division can be done on a basis of a large number of variables like age, gender, income and so on. The process of dividing customers into groups that are distinct from each other and can be identified on the basis of certain variables is called marketing segmentation. This makes it easier for the firm to profile, understand and distinguish the various groups in the customer base.

Difference between the various age groups in terms of