Market Segmentation
Market segmentation is a way for businesses to divide their market into segments with distinct characteristics in order to target them more effectively. For example, companies can segment their market by gender. An example of this is the market for razors. Gillette is a company that sells different razors for men and women that are designed, packaged, and promoted in completely different ways.
Search for Gillette Venus and Gillette Mach 3.
Which of these products are aimed at women and which are aimed at men? What are the differences?
The market can be segmented by age, interests, income, education, and several other characteristics. The important thing is that the segmentation divides the customers into specific groups which have similar characteristics.