Customer segments refer to the distinct groups of people or organizations that a business targets with its products or services. These segments are identified based on shared characteristics such as demographics, behaviors, needs, or preferences. By understanding these groups, companies can tailor their marketing strategies and offerings to better meet the specific demands of each segment. Effective segmentation allows businesses to allocate resources efficiently and enhance customer satisfaction. For example, a company might target young professionals with tech gadgets while focusing on families for home appliances. This targeted approach helps in building stronger relationships and driving sales.