What Is Market Segmentation And Why Is It Important?

Market segmentation is a very important aspect of marketing in that it allows you to channel your resources to the right audience within your target market so as to make the most amount of profit that is possible and this is why we’ll be looking at what is market segmentation and why is it important.

I’m going to keep this post short but I hope that you’ll in the end have a clear picture as to what is market segmentation and why is it important in your marketing campaigns.

What Is Market Segmentation And Why Is It Important?

Market segmentation is whereby customers and potential customers are organized into groups of similar types of classes, classifying them into manageable groups to be served by the entrepreneur.

In other words, market segmentation is the organization of current customers (i.e. those who’ve in the past made a purchase) and potential customers (i.e. those who’ve showed interest in doing business with you or who are in your mailing list/customer list) in accordance to a specific parameter e.g. purchasing power.

It’s important in that it helps entrepreneurs to test which group of customers is more profitable hence channel more of their resources to that particular section instead to those who are what I would call “passer-by” customers or “just looking” customers so to say

My Take On What Is Market Segmentation And Why Is It Important

As seen in the above section (what is market segmentation and why is it important), I believe it’s safe to say that segmenting your market wisely can have a positive financial impact on your business irrespective of the niche you’re in and segmenting your market without much research can have a disastrous impact on your business.

If you found value in the above post on what is market segmentation and why is it important, then please leave a comment below and don’t forget to share! 

(What Is Market Segmentation And Why Is It Important: Featured image courtesy of FreeDigitalPhotos.net)