Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail
Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail

Market Segment

What it is:

A market segment is a discrete group of individuals who bear a number of similar characteristics.

How it works (Example):

A market segment is characterized as a homogeneous population within a given market whose members display similar responses to certain stimuli and bear distinct social, cultural, and economic features. For example, a market segment can be comprised of individuals of the same age group, interests, language and/or gender. Individual market segments are often classified as social, demographic and geographic.

Why it Matters:

Companies use market segments as part of a marketing strategy. Understanding that a given product or service may be most marketable among a specific group, a company identifies the appropriate market segment. It then launches its advertising campaign so that it appeals to those who fall within that segment.