Segmentation is a strategy business method of dividing a product in its line based on various factors like demography, age, sex, culture, life style, interests, etc., one product can be viewed in a different perspective by different consumers. Hence, a product is customized based on the consumer requirement, need, interest, etc., this is called as segmentation. The total population of customers is obviously large and varied.  It contains people from all sectors and belonging to different income groups. Each of these different groups of customers’  require a unique and different approach. The basis for this approach is developed with market segmentation analysis.

Analysis of this segmentation depends upon market and business in some aspects. There are different types of segmentations such as:

1. Psychographic                                      

                                                  

2. Behavioral

3. Geographic and so on

Market segmentation also gives the customers a clear view of what to buy and what not to buy. Market segmentation helps the organizations to target the right product to the right customers at the right time. Segmentation helps the organizations to know and understand their customers better. Organizations can now reach a wider audience and promote their products more effectively.

For example, Nivea has wide range of products in its same length. It has many perfumes and deodorants based on gender i.e., male and female, age groups i.e., youth, aged, etc., Hence, in the same way there are so many products in the same product line for different consumers.

Maruti Suzuki has adopted a focused approach and wisely created segments within a large market to promote their cars.

Lower Income Group – Alto k10

Middle Income Group - Wagon R, Swift, Swift Dzire, Ritz

High Income Group – Ciaz, Ertiga

Thus, segmentation helps companies to identify right consumers who will purchase their products so that they can use all their resources towards their specified segment.