In five years, Volkswagen sold only 57,000 of its Routan minivan. The company decided to stop producing the model and instead developed a new SUV, the Atlas. This illustrates that market segmentation:

To position yourself in the market successfully, you need to select the most beneficial market group for your business and know its characteristics, in order to adapt your product to the requirements demanded by this audience and determine the most appropriate marketing strategies.

The ability to select the target market of your company, that is, that sector of the population that is expected to consume your product or service, is decisive to achieve business objectives and business success.

Market segmentation is a process through which the market is divided into homogeneous groups or segments of consumers, which have a series of similar and significant characteristics for the company.

This segmentation allows to carry out a series of commercial strategies and thus fulfill a double purpose:

Better meet customer needs.
Reach the business objectives of the company.

Each organization can select one or more segments as a market goal, for which it will develop different marketing strategies. You can integrate market segmentation with the rest of your marketing tools, so that your strategy is increasingly comprehensive.