The term market refers to the aggregate of all demand for a particular product or service arising from the aggregate of all consumers – both existing and potential for the product. The market varies greatly to each other since consumers who are markets vary greatly in their characteristics. Even certain markets for certain products are not entirely homogeneous.
In small business marketing, the market is divided into several smaller units, each with homogeneous characteristics; It facilitates effective market tapping. Market segmentation is the process of separating the total market for certain products into a number of sub-markets.
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The process is based on the recognition that any given market or consumer group is made up of a number of subgroups distinguished by varying needs and buying behavior. Also, it is worth separating consumers into the appropriate segment in such a way that the characteristics of the segmented group will vary greatly between segments but also identical in the segment.
Market segmentation gives several benefits to marketing men. First of all, this helped him distinguish one group of customers from the others in a particular market and thus allow it to decide which market segment should form a target market. It also allows effective crystallization of the specific needs of buyers in the target market and facilitates in-depth study of the characteristics of buyers.