brand glossary: market segmentation

Market Segmentation, is the process of subdividing a large, homogenous market into easily and clearly identifiable and measurable consumer segments. These segments are typically defined by demographic, behavioral, psychographic, and geographical differences, and then grouped by similar needs and demands. This way, an organization can be far more targeted in how they reach their priority audiences, particularly through its marketing and branding activities, and can do so in way that is relevant and meaningful–as well as measurable. Segmentation should be based on strategic priorities and the level at which strategic branding decisions are made, as well as availability of data.