To compete successfully in today's volatile and competitive business markets, mass marketing is no longer a viable option for most companies. Market segmentation is the process of partitioning markets into groups of potential customers with similar needs or characteristics who are likely to exhibit similar purchase behavior.
Market segmentation is the foundation on which all other marketing actions can be based.
The overall objective of using a market segmentation strategy is to improve your company's competitive position and better serve the needs of your customers. Some specific objectives may include increased sales, improved market share and enhanced image. This may be accomplished by searching out unique marketing advantages, seeking new market segments that competitors are not cultivating, or developing new approaches to old problems. Market segmentation is both a science and an art. There are many alternative methods for segmenting markets.