What is a market segment and target market

Market segmentation and determination of target segments is one of the key marketing tasks. This allows you to focus the company’s efforts on a strategically important line of business and increase the effectiveness of marketing policies.

Market segmentation

Market segmentation is an indispensable element of strategic marketing. Market segmentation is the process of dividing the market into segments (or groups) of consumers according to certain criteria. Its goal is the targeted regulation and implementation of targeted marketing policies.

A homogeneous group of consumers acts similarly to market actions (advertising, sales channels) as a market segment. As objects for market segmentation are not only groups of consumers, but also groups of products and enterprises (competitors).

Segmentation is carried out according to certain criteria, by which are meant the signs by which consumers differ or are grouped. It can be geographical (region of residence, population), demographic (age, gender), psychographic (lifestyle, personal qualities) and socio-economic (education, income, profession). The criteria for consumer segmentation in industrial markets may include consumer industries (oil and gas, metallurgy, etc.), the size of enterprises or the form of ownership of enterprises.