Market Segmentation:

We talk about a market segmentation if the total market for a product is broken down into several sub-markets (i.e. different markets), and each sub-market has homogeneous characteristics in its essential aspects.

Marketing segmentation is customer-oriented; a company will first identify the needs of the consumers within a proposed sub-market or segment before it plans, develops, prices and delivers goods and services to satisfy such needs profitably in the market segment.

The total market for most products is heterogeneous and cannot be considered as one homogeneous market. It does not have a single uniform entity. It has sub-markets which are significantly different from one another. It is easily broken down into sections known as segments.