What is a market segment and how can they be defined?

• A market segment is a group of customers who have similar needs, which are different from customer needs in other parts of the market. • A narrow segment is called a niche • Company strategy can choose to focus on a market segment or niche, aka ‘niche strategy’ • Niche specialization is a trade-off against volume and scope • Market segmentation helps us sort and strategically respond to buyer attributes. Identify gaps and opportunities