What is Segmentation?

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.