GLOSSARY
Market segmentation
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Market segmentation is the practice of dividing a broad target market into smaller, more defined groups of consumers who have similar needs or characteristics.
What is Market Segmentation?
Market segmentation involves categorizing potential customers into groups based on shared characteristics like demographics, behavior, or preferences.
Why It Matters for Startups
Segmentation helps startups tailor their products, services, and marketing strategies to specific customer segments, increasing relevance and effectiveness.
Examples of Market Segmentation
- Geographic: Targeting customers based on location
- Demographic: Segmenting by age, gender, income, etc.
- Psychographic: Grouping based on, values, interests
Related Concepts
Market segmentation is closely linked to target marketing, positioning, and customer personas, all crucial for startups to reach and engage their ideal customers.