MARKET SEGMENT Meaning and
Definition
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Market segment refers to a sub-group of consumers or organizations that share similar characteristics, needs, wants, or purchase behaviors within a larger market. It is a strategic approach used in marketing to divide a market into distinct groups, allowing companies to tailor their products, services, and marketing strategies to meet the specific needs and preferences of each segment to maximize their marketing effectiveness.
To determine market segments, companies typically employ various segmentation variables such as demographics (age, gender, income), psychographics (values, beliefs, lifestyles), behavioral patterns (usage rate, loyalty), or geographic factors (location, climate). These variables help identify common traits among a specific subset of customers, enabling companies to understand their unique demands and develop targeted marketing strategies.
Segmentation allows businesses to concentrate their resources on specific market segments that offer the greatest potential for profitability. By understanding customers' needs, behaviors, and preferences, companies can create products that satisfy those specific requirements, design marketing campaigns that effectively communicate value, and establish a competitive advantage over their rivals. Moreover, market segmentation aids in minimizing wasted resources and maximizing return on investment by enabling companies to allocate their marketing budgets more efficiently and tailor their promotional efforts to reach the most receptive audience in each segment.
Overall, market segmentation is an essential marketing concept that helps businesses better understand their customer base, develop targeted strategies, tailor products and services, and increase their competitiveness in the market by effectively meeting the distinct demands of different customer segments.
Common Misspellings for MARKET SEGMENT
- narket segment
- karket segment
- jarket segment
- mzrket segment
- msrket segment
- mwrket segment
- mqrket segment
- maeket segment
- madket segment
- mafket segment
- matket segment
- ma5ket segment
- ma4ket segment
- marjet segment
- marmet segment
- marlet segment
- maroet segment
- mariet segment
- markwt segment
- markst segment
Etymology of MARKET SEGMENT
The word "market" originates from the Latin word "mercatus", which means "trading" or "buying/selling of goods". It evolved through various Old English and Old French forms to reach its current usage.
The term "segment" comes from the Latin word "segmentum", which means a part or a section. It was commonly used in geometry to refer to a division of a line.
The combination of these two words, "market segment", refers to the division or categorization of a market into specific sections or groups based on various criteria like demographics, behavior, needs, or purchasing patterns.
