Skip main navigation

What is Segmentation?

Lets look at what is considered to be a process of segmentation in the marketing.
8 gummy bears of different colours
© ULAW Business School


Segmentation is the technique used by marketers to divide the markets into groups with common features which will denote similar interests in products and services. Without segmentation, the marketer has the whole 7.4 billion human beings of the planet to try and market to. That is not easy and not in the interest of many companies. The same is true for business customers. Not segmenting would mean that any company of any size, any industry and any location is a potential customer.

Only handful of organisations are geared to appeal to such a large market. Segmentation allows companies to match their own capabilities to the group of customers that best fits its products and services.

© ULAW Business School
This article is from the free online

Strategic Marketing: Segmentation, Targeting, Positioning

Created by
FutureLearn - Learning For Life

Our purpose is to transform access to education.

We offer a diverse selection of courses from leading universities and cultural institutions from around the world. These are delivered one step at a time, and are accessible on mobile, tablet and desktop, so you can fit learning around your life.

We believe learning should be an enjoyable, social experience, so our courses offer the opportunity to discuss what you’re learning with others as you go, helping you make fresh discoveries and form new ideas.
You can unlock new opportunities with unlimited access to hundreds of online short courses for a year by subscribing to our Unlimited package. Build your knowledge with top universities and organisations.

Learn more about how FutureLearn is transforming access to education