Market Segments or Segmentation

This is a crucial concept that students have to first understand before embarking on their marketing knowledge journey.

When a business starts off initially, it has to divide or break up the huge consumer market into segments. They can do this by simply grouping consumers according to income levels, geographical regions, age groups etc; and then decide which market segment or segments they want to target.

Once decided, they will have derived their target markets to 'aim' at for sales of their products/services.