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Market segmentation is a marketing strategy that involves dividing a broad target market into smaller, more homogeneous groups of consumers. It is based on the idea that different groups of consumers have different needs and preferences, and that by targeting specific segments, companies can better meet the needs of their customers. Market segmentation is used to identify and target specific groups of consumers who are likely to respond positively to a company's products or services.
The market segmentation process typically involves analyzing customer data to identify common characteristics among customers, such as age, gender, income level, and lifestyle. Companies then use this information to create segments that are tailored to their target market. Companies can then use these segments to create targeted marketing campaigns that are tailored to the needs of each segment.
Some companies in the market segmentation market include Nielsen, Experian, Acxiom, and Epsilon. These companies provide data and analytics services to help companies identify and target their target market segments. Show Less Read more