Market segmentation is the process of dividing a market into groups, known as segments, of customers with similar needs or characteristics who are likely to exhibit similar purchase behaviour. In segmenting the market the business is acknowledging that different 'types' of buyers may require different products or marketing approaches / marketing mixes.

Whilst a mass marketing approach will treat the market as a whole providing one version of the product and one marketing mix for all buyers in the market. Market segmentation enables the business to target different groups of buyers by adapting its product and marketing mix to best suit each targeted segment. A good example of this approach can be seen in the mobile phone industry.

Case Study : T-Mobile
	Mobile Phone Segmentation T-Mobile provide a wide range of mobile phones with different features which target customers in terms of their communication needs and wants. This is then complemented by a range of mobile phone tariffs, or price plans, created to suit the different phone usage behaviour of customers in the market.  click to review the range of T Mobile - Phone and Payment Packages T-Mobile have even underlined their use of market segmentation in advertising campaigns  click to view the examples of T Mobile commercials

Within business studies we focus on the most commonly used bases for segmentation:

• geographical bases (region, urban/non-urban environment...)
• demographic bases (age, gender, life cycle phase...)
• psychographic bases (lifestyle, values, personality...)
• behaviour bases (seeking profits, degree of use, degree of loyalty...)