What is market segmentation?

Market segmentation is the process of dividing a broad target market into smaller subsets of consumers who have common needs, interests, or characteristics. This approach allows marketers to tailor their strategies and communications effectively to meet the specific demands of each segment. By identifying distinct segments within the overall market, businesses can create more personalized marketing campaigns, product offerings, and pricing strategies that resonate better with individual groups.

This targeted approach helps in maximizing marketing efficiency, enhancing customer satisfaction, and ultimately driving sales growth. It recognizes that a one-size-fits-all strategy may not be compelling enough to engage the diverse preferences of a wide audience.

The other options do not accurately capture the essence of market segmentation. Launching a marketing campaign, combining different markets, or implementing methods to increase sales might be outcomes or strategies that utilize market segmentation but do not define it directly.