A subgroup of the total market defined by one or more characteristics. There are any number of ways to segment the market. Income, age, location, education affiliation to organizations and psychographics are just a few that apply to the consumer market. Common business market segmentation criteria include, among others, industry, company size (which may be defined by any available measure such as revenue, profit, number of employees, etc.) and job classification. Two or more characteristics can be used to define segments more precisely than a single characteristic (e.g., physicians with incomes over $300,000 living in the NYC area), however at some point the segments may become too small to target profitably.
Contributed by: MarcommWise Staff
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