Few firms are big enough to supply the needs of an entire market, most must breakdown the total demand into segments and choose the one or some of them,  , which the firm is capable enough to handle.

Four basic factors that affect the market segmentation are

* Clear identification of the segment
* Measurability and effective size
* Its accessibility through promotional efforts
* Its appropriateness to the policies and resources of the firm

Market segmentation can be done in four ways viz

Behavioral, demographic, psychographic and geographical differences. These tools are quite precious in determining the right marketing mix, i.e. the 4 Ps of marketing (product, price, place and promotion) a judicious combination of the 4 Ps help marketers achieve their aims

Market segmentation is another part of market research where in you carry out division of the market or population, into sub groups with similar motivations.

Market segmentation is widely used for segmenting on geographic differences, personality differences, demographic differences, technology differences. Knowledge of such differences gives an insight to the marketers in designing their marketing strategies in such a way that they can target the right customers and position their products in the minds of customers , in such a way that they end up buying the product.