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. Word-Of-Mouth Marketing - WOM Marketing ...

    When a consumer's interest for a company's product or service ...
  2. Predatory Pricing

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

    Usually referring to E. Jerome McCarthy's 4 P classification ...
  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. How A Limited Government Affects A Country's ...
    Economics

    How A Limited Government Affects A Country's ...

Hot Definitions
  1. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  2. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
  3. Wage-Price Spiral

    A macroeconomic theory to explain the cause-and-effect relationship between rising wages and rising prices, or inflation. ...
  4. Accelerated Depreciation

    Any method of depreciation used for accounting or income tax purposes that allows greater deductions in the earlier years ...
  5. Call Risk

    The risk, faced by a holder of a callable bond, that a bond issuer will take advantage of the callable bond feature and redeem ...
  6. Parity Price

    When the price of an asset is directly linked to another price. Examples of parity price are: 1. Convertibles - the price ...
Trading Center