Market segmentation is critical, because it helps a company understand its customer base in a manner that is geared to optimize investments. Whether that is advertising, marketing, public relations, sales or customer service. Targeting helps develop optimum programs.
Markets can be segmented by many variables such as:
- Buying factors
- Attitudes and Opinions
There is no single correct way to segment a market. The combination of hypothesized segmentation schemes combined with the direction and capabilities of the company should drive the particular methodology.