Market Segment

AAA

DEFINITION of 'Market Segment'

A group of people that share one or more characteristics. Each market segment is unique and marketing managers decide on various criteria to create their target market(s). They may approach each segment differently, after fully understanding the needs, lifestyles, demographics and personality of the target. To meet the most basic criteria of a market segment, three characteristics must be present:

  1. Homogeneity (common needs within segment)
  2. Distinction (unique from other groups)
  3. Reaction (similar response to market)

INVESTOPEDIA EXPLAINS 'Market Segment'

Examples of common characteristics are: interests, lifestyle, age, gender, etc. Common types of market segmentation include: geographic, demographic, psychographic and behavioral.

RELATED TERMS
  1. Predatory Pricing

    The act of setting prices low in an attempt to eliminate the ...
  2. Marketing Mix

    Usually referring to E. Jerome McCarthy's 4 P classification ...
  3. Word-Of-Mouth Marketing - WOM Marketing ...

    When a consumer's interest for a company's product or service ...
  4. Brand Management

    A function of marketing that uses techniques to increase the ...
  5. Market Segmentation Theory

    A modern theory pertaining to interest rates stipulating that ...
  6. Market Segmentation

    A marketing term referring to the aggregating of prospective ...
Related Articles
  1. The Green Marketing Machine
    Fundamental Analysis

    The Green Marketing Machine

  2. The Importance Of Segment Data
    Active Trading

    The Importance Of Segment Data

  3. The Marketing Director's Pitch
    Professionals

    The Marketing Director's Pitch

  4. Using Normal Distribution Formula To ...
    Investing Basics

    Using Normal Distribution Formula To ...

comments powered by Disqus
Hot Definitions
  1. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  2. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  3. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  4. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
  5. Net Sales

    The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any ...
  6. Over The Counter

    A security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, etc. The phrase "over-the-counter" ...
Trading Center