The heterogeneous market is broken up in the process into a number of fairly homogeneous units.
The process is based on the recognition that any given market or consumer group is made up of a number of subgroups distinguished by varying needs and buying behaviors. In addition, it is feasible to disaggregate the consumers into suitable segments in such a manner that the characteristics of the segmented groups would vary significantly among segments, but would also be identical within segments.
Market segmentation confers several benefits on the business firms. In the first place, it helps distinguish one customer group from another within a given market, thereby enabling a business to decide which segment of the market should form the target market.
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