Market segmentation refers to the process of analyzing a company’s total market and dividing it into distinct customer groups. It is a crucial function of the marketing department, playing a key role in achieving business success. Nearly all companies require a well-defined market segmentation strategy, as it builds the foundation for identifying the right customer groups. An effective market segmentation strategy enables companies to tailor their products, promotional messages, pricing, and marketing channels (the 4Ps) to reach their target audience with the desired impact.