# Market segmentation: what it is and how it works
> Market segmentation groups people or organisations with relevant characteristics in order to understand and meet their needs.
URL: https://www.zorraquino.com/en/dictionary/advertising/segmentation.html

# Market segmentation

Market segmentation groups people or organisations with relevant characteristics in order to understand and meet their needs

What it means, how it is used and where it comes up, with its related concepts.

[The whole glossary](https://www.zorraquino.com/en/dictionary)

## What it is and how it works

It can consider behaviour, problems, context, value or buying criteria. Segments should be useful for making decisions and identifiable in practice. Dividing a customer base by age with no connection to the need provides little strategic direction.

Also known as

Segmentation

Topics

[Research and insights](https://www.zorraquino.com/en/dictionary/category/investigacion-e-insights)

## Variants and linked concepts

- **Niche marketing.** A niche is a group with specific needs that can be served with a specialised offering. Its size should be related to viability.
- **Market niche.** Choosing a niche should be based on needs, access and the capacity to serve it, not just on a demographic label.
- **Audience profile.** The audience profile summarises characteristics relevant to a decision. It should distinguish observations from assumptions and avoid stereotypes.
- **Target.** Target is the audience an offering or action is aimed at. It should be defined using criteria that are useful for meeting needs.

## Related concepts

- [Market research](https://www.zorraquino.com/en/dictionary/market-research)
- [Sentiment analysis](https://www.zorraquino.com/en/dictionary/sentiment-analysis)
- [Thematic analysis](https://www.zorraquino.com/en/dictionary/thematic-analysis)