To get a comprehensive idea of the salient features of market segmentation, it is essential to understand the definition.

According to Google, the most typed query in the USA and Australia is “what is market segmentation marketing strategy” or “what segmentation in the field of marketing is?”

Market Segmentation is a process of dividing a market of potential customers into groups, or segments on the basis of different characteristics. In the process of segmenting, researchers specifically investigate common characteristics like shared needs, common interests, similar lifestyles or same demographic profiles.

The “market segmentation” concept was termed by Wendell R. Smith in 1956. There are various reasons for segmenting the market. One of the primary reason is that marketers aim to create a custom marketing mix for each segment that can be catered accordingly. This enables the companies to focus more on product differentiation strategies, marketing and pricing strategies. It would also help to avoid unnecessary risks, reduce costs, target customers better, and generate more profits.

Thus, it is essential to segment the entire market population for a business to succeed.