Market Segmentation


The concept describes three stages that form the process of market segmentation and explores the reasons for segmenting the market. The concept also reviews the advantages of market segmentation and provides examples of how organisations have achieved stronger positioning through this technique.

Technique Overview

Market Segmentation

Market Segmentation Definition

Market segmentation is the analytical process of breaking down the market into smaller groups, each of which requires a different marketing mix. Each segment should be measurable (size and characteristics), substantial (sizeable), accessible (reachable targets), and actionable (providing profitable business opportunities) (Sutherland and Canwell, 2004).

Market Segmentation Description *

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Business Evidence

Strengths, weaknesses and examples of Market Segmentation *

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Business Application

Implementation, success factors and measures of Market Segmentation *

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Professional Tools

Market Segmentation videos and downloads *

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Further Reading

Market Segmentation web and print resources *

Market Segmentation references (4 of up to 20) *

  • Beane, T., Ennis, D. (1987) Market Segmentation: A Review. European Journal of Marketing, Vol. 21, pp. 20-44.
  • Brugmann, J. and Prahalad, C.K. (2007) Cocreating Business’s New Social Compact. Harvard Business Review, February.
  • Claycamp, H.J. (1968) A Theory of Market Segmentation. Journal of Marketing Research, Vol. 5(4).
  • Datta, Y. (1986) Market Segmentation: An Integrated Framework. Long Range Planning, Vol. 29.

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