What is the primary goal of market segmentation?

The primary goal of market segmentation is to create a customer value-driven marketing strategy. Market segmentation allows companies to divide a broader market into smaller, more defined groups of consumers who share similar characteristics, needs, or behaviors. By understanding these segments, businesses can tailor their marketing strategies—such as product offerings, messaging, and distribution channels—to better meet the specific needs and preferences of each group. This targeted approach increases the likelihood of satisfying customers, enhancing loyalty, and ultimately driving sales.

The concept of a customer value-driven marketing strategy is central to successful market segmentation because it emphasizes understanding and delivering what customers value most, thus establishing a competitive advantage and improving overall market performance.