The process of defining and subdividing a large homogenous market into clearly identifiable segments having similar needs, wants, or demand characteristics. Its objective is to design a marketing mix that precisely matches the expectations of customers in the targeted segment. Few companies are big enough to supply the needs of an entire market; most must breakdown the total demand into segments and choose those that the company is best equipped to handle. Four basic factors that affect market segmentation are
(1) clear identification of the segment,
(2) measurability of its effective size,
(3) its accessibility through promotional efforts, and
(4) its appropriateness to the policies and resources of the company. The four basic market segmentation-strategies are based on (a) behavioral (b) demographic, (c) psychographic, and (d) geographical differences.
Additional Requirement
The question comes from Marketing and it is a report on market segmentation. Market segmentation is a process by which markets are segmented or segregated based on various factors such as behavioral, demographic, psychographic or geographical differences or similarities. In this particular question, geographical market segmentation has been given in the solution.
Word limit 1050