In this chapter, market segmentation is defined and the differences between segmenting B2C, B2B, and international markets are explored. Segmentation, plus targeting and positioning, are the major elements of a customer-driven marketing strategy.

Smart marketers know they can’t reach and serve every buyer, so they approach the broader market with tools that help them identify, select, and position their products for consumers who are most likely to need the… Better understanding B2C or B2B markets also helps marketers better understand unmet needs, assisting in the development of new products and services.

market segmentation — the process of dividing a broad consumer or business market into subgroups based on shared characteristics. ADAMS — the essential factors in effective market segmentation—accessible, differentiable, actionable, measurable, and substantial. concentrated marketing — marketing segmentation strategy in which the firm concentrates its efforts and resources on serving one segment of the market. demographic segmentation — grouping customers and potential customers together by focusing on certain traits such as age, gender, income, occupation, and family status.