market segment

Meaning

A market segment is a subgroup of people or organizations sharing one or more characteristics that cause them to have similar product needs. Businesses divide a broad target market into smaller, manageable segments to tailor their products and marketing messages more effectively.

Examples

• We need to target a younger market segment with this new campaign.

  We need to target a younger market segment with this new campaign.

• The luxury market segment remains highly profitable despite the economic downturn.

  The luxury market segment remains highly profitable despite the economic downturn.

• By dividing the audience, we identified a completely untapped market segment.

  By dividing the audience, we identified a completely untapped market segment.

• Each market segment requires a different advertising approach.

  Each market segment requires a different advertising approach.

• Our software is designed specifically for the small-business market segment.

  Our software is designed specifically for the small-business market segment.

Common Mistakes

• ✗ We are focusing on a new market section.

  ✓ We are focusing on a new market segment.

  While 'section' means a part of something, 'segment' is the specific marketing term used to describe a distinct group of consumers.

• ✗ This product is for a specific segment of market.

  ✓ This product is for a specific market segment.

  'Market segment' is a set compound noun. Avoid using 'segment of market'.

Related Expressions

Practice

• Our most profitable ___ is middle-aged homeowners.

  💡 A specific group of customers with similar characteristics.

  Show answer

  market segment

• The company decided to exit the low-end ___ due to low profit margins.

  💡 A distinct part of the overall market.

  Show answer

  market segment