Market segmentation is a concept of economics and marketing. The market area is a subdivision of the market, which is made up of people or organizations who share one or more characteristics. A true market area meets all the following criteria: it is different from other areas. This reflects the common needs within the segment. It responds equally to market stimulus and it can be reached through market intervention. This term is also used when consumers with similar product and service are grouped so that they can receive separate amounts. Broadly, they can be viewed as a ‘positive’ and ‘negative’ application of the same idea, where the market is divided into smaller groups.
While the ‘ideal’ market areas may exist in theory, in reality, each organization employed in the market can develop imagery in different ways and can produce product specifications strategy to take advantage of these areas. Market segmentation and relevant product specification strategies can provide temporary commercial benefits to the firm.
Market segmentation is to divide the market into groups of individual markets with a need or need, which the company divides the market into different groups, which have different needs, needs, behaviors or those who want different products and services. Market Segmentation can be done on the basis of a current segment of the same product from other companies, Industrial market segmentation is broadly different from consumer market segmentation. All these methods of division are representative for real division, which are not always conducive to convenient demographic boundaries.
Consumer-based market segmentation can be done on the basis of product specific so that it can closely adapt to specific products and individuals. However, innumerable general market area systems are also present, such as Nielsen Claritas PRIZM system, provides a broader division of the United States population, based on statistical analysis of domestic and geo-demographic data.