Segmentation is a term used so frequently that most people aren’t even sure what it means. To me, a market segment is a group of individuals that have a similar set of needs. Simple.
But, don’t confuse a segment and a sector. Let’s say, Acer Computers want sto target young high-income women. Well, some of these women may want a basic Dell, some might want a entertainment HP PC or some might want the latest Dolce and Gabana $5000 model. Young high-income women is a sector, not a segment. A segment is defined more accurately in the sense that a marketer had more data on what the segment is about like income levels, life habits, age etc. » Read more: Market Segmentation – A Primer
Clever firms are always looking for the next best thing that they can add to their product or service platforms and in the process differentiating themselves from their competitors.
