Market segmentation is the process of dividing the market into distinct groups of buyers with different needs, characteristics, or behaviors that are likely to require separate products or marketing programs. This is the first step in strategic customer-centered marketing (STP).
Segmentation can be done by various variables: geographic, demographic, psychographic (lifestyle, personality), or behavioral (reasons for buying, benefits, loyalty). The main goal is for the company to focus on those parts of the market that it can serve best and most profitably.
