Market segmentation is a concept of marketing where you divide your brand’s larger target audience into smaller subsets/segments based on certain characteristics like age, gender, region, etc. Each subgroup will contain customers with common interests.

By segmenting your customers, you understand them better, and this helps you formulate sales and marketing strategies that are more efficient. Market segmentation tells you how to develop your product further to resonate strongly with your customers’ needs.

Almost all risks of an unproductive marketing campaign are mitigated through this methodology! You can come up with strategies and promotional schemes as per the preferences of each segment of customers.

Imagine someone searching for a new smartphone. They’re unlikely to consider a high-end device with advanced features if they’re on a tight budget. Instead, they will move towards a more affordable option that still meets their basic requirements.

Similarly, a parent shopping for toys for their toddler wouldn’t browse items designed for older children or adults.

Understanding your audience’s behavior and preferences is crucial. Market segmentation helps you customize your marketing to fit different groups of customers. This means you can create ads on platforms like social media that speak to specific groups of people, making them more likely to be interested and buy from you.