Market Segmentation

If the universe of all potential buyers is your “market,” then the market can be divided up into sections or “segments” based on any number of factors. For example, you might divide up your customers by age group and find that you sell most of your products to people aged 18 to 34. You might divide them up by family size and find that you sell most of your products to married couples with young children. You might divide them up by economic status and find that you sell most products to people with an annual income of about $50,000 to $100,000. You might divide them up by geographic location and find that you sell most of your products to people living within two specific zip codes.