Market segmentation is the process of splitting up the market into different segments or chunks which share the same characteristics

Characteristics that businesses segment by can include:

- Age

- Socio economic group

- Gender

- Culture

- Ethnicity

- Lifestyle

Segmentation analysis allows a business to tailor their marketing strategy to meet the needs of different customers

Some market segments are more attractive than others as they may display lower levels of competition, faster market growth or more opportunities to make profits