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IMDR’s Journal of Management Development & Research 2023-24
to selecting a market segment, each business must determine which one would be most profitable and whose

needs they can serve with their product.

Market Segmentation.

The process of effectively identifying market segments and breaking down a large customer base into smaller
consumer groups made up of both current and potential customers is known as market segmentation. Market

segmentation is a consumer-focused technique that works in practically all market situations. Researchers

usually look for shared features, such demands, hobbies, lifestyles, or even comparable demographic profiles,
when separating or segmenting markets. Since various consumers are often targeted through different

offerings, pricing, promotions, distributes, or some combination of marketing characteristics, market
segmentation presupposes that distinct groups require separate marketing programmes. The marketer must

choose which consumer segment to target after identifying and profiling the various categories.

Since every customer will have distinct preferences and ways of thinking. Individuals could be more price

sensitive than others, or they might believe that expensive things are of higher quality and value them above

cheaper ones. Customers' incomes also have a significant impact on this; those with higher incomes may
purchase expensive goods, while those with middle-class or lower-class incomes may purchase more

inexpensive or middle-class goods.

A business can only meet the needs of a specific market segment at a time. Serving every market segment

might be an unavoidable catalyst for a business to fail. Finding high-yield segments is the main goal of

segmentation. These customer groups probably yield the highest profits, or they could have room to expand.
As a result, target markets are often the most profitable divisions.

Strategic segmentation is now more crucial than ever in today's dispersed digital market. Businesses are
increasingly relying on market segmentation to ensure successful sales and marketing, as well as to guide

decisions on distribution, service to consumers, design of products, and other key functions. This is because it

offers a clear roadmap for reaching and converting their most likely customers.

Objectives.

The Objective of this research paper is to understand:

1. To understand what Market Segmentation is along with examples.

2. To study the Different Types of Market Segmentation.

3. To analyse the Benefits and Challenges of Market Segmentation.
4. To study the Strategies of Market Segmentation.

Market Segmentation Understanding through Examples