Market segmentation is basically a strategy involved in marketing that divides a large market or network into some subsets of customers having some common requirements and applications. These requirements are for certain goods or services or both that is offered in our market. These subgroups or subsets of customers are identified by some different demographics, based on their purposes for indentifying these groups. Marketing campaigns and similar strategies are designed and further implemented depending on the type of segmentation done.

The primary reason for concentrating in the principles of market segmentation is basically to help a company in understanding the requirements and needs of their consumer base. often times, the tasks of segregating the consumers by some specific criteria helps a company in identifying various other applications of the products that may have been or may not have been self evident or obvious in the past. Unveiling such ideas for using goods or services can be beneficial for the company targeting larger audiences in the same demographic zone, thereby increasing the market share among the specified sub-market class.

There are different strategies involved in market segmentation that have been developed over a period of time with some wide array of characteristics that are found among the consumers. While one group can be identified by the age group, the other might be identified by the gender. Location is also another common area of market segmentation, while education level and income level might be taken into consideration as well. In general, it has been observed that there are some established consumers falling into one category or even more, but the marketing strategies are normally the same.