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Post a RequestMarket Segmentation Definition
Market segmentation – n : the process of subdividing a
market into distinct groups of customers with similar needs, such that a subset
of the market (a segment) can be selected as a target market and can be reached
with a distinct marketing mix. One way to check the legitimacy of a market
segment is to ask whether the customers in that segment are homogeneous and
self-referencing (i.e., do they “talk to each other,” read the same
publications, attend the same conferences, belong to the same professional associations,
shop in the same places, etc.?); self-referencing groups of customers should be
relatively easily and cost-effectively reached by a single marketing mix.
Markets may be segmented: a) geographically (Where do they live?); b)
demographically (i.e., according to age, race, gender, education, religion,
etc.); c) psychographically (i.e., according to their interests, attitudes,
opinions, and needs); and/or d) behavioristically (i.e., according to usage
patterns, history, responsiveness or loyalty). (see also market segment)
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Adapted from "The CompanyCrafters Entrepreneur's Dictionary"
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