Define what is meant by the term target segmentation.?

Question

Explain in detail the three major ways an organization can divide their market. Why would organizations choose to do this?

Answer 1

There are a myriad ways an organization can segments its market. Some of the most commonly used are
1. Age
2. Economic-Educational Status
3. Lifestyle Stage-Married/ Single/Divorced etc
4. Various other psychometric segmentation methodologies including Values/Attitudes/Lifestyle segmentation etc

While in marketing text books, all these types of segmentation tools are taught as discrete tools, most organizations would use some combination to segment their market

Segmentation is required in order to bring focus to any company's marketing and sales effort. A company segments its market in order to understand which set of consumers (basis the segmentation carried out) represents the best potential for its product in terms of sales and ultimately profit.