Explain The Term Market Segmentation. Why Should Marketers Consider Segmentation As An Important Marketing Decision? Discuss With The Help Of Suitable Examples.

Market segmentation is the process of segmenting the market for the demand of the product or a service, into different groups of customers on the basis of their similar characteristics and differences. It is one of the major steps of marketing of a product because market attractiveness analysis cannot be done unless it is known that what are the major segments of consumers in the market and which is the most profitable segment of the customers which can be targeted by the company. For example, if Pizza hut plans to open its outlet in a city where there is not another pizza hut outlet. It is necessary for pizza hut to segment the market on the basis of the common characteristics of consumers like income, age, behaviour and many other characteristics. On the basis of this segmentation pizza hut can come up with a suitable pricing strategy and can come up with a market attractiveness analysis.
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Market segmentation is the process of dividing the market acco t the tastes n preferences of the consumers... This process is very imp for any marketer as he can know which segment he can better cater to and can fulfill their needs. This also helps in identifying the niche segment whose wants r never met at al. They will prove to be very profitable.
for eg: Mc.Donalds. This co has segmented their markets on geographical basis... Hence it provides diffi foods for different countries acco to their need and tastes.