Segmentation is the process of dividing a larger market into smaller, more manageable groups based on shared characteristics. These characteristics can include demographics, interests, behaviors, or geographic locations. By identifying these segments, businesses can tailor their marketing strategies to meet the specific needs of each group, leading to more effective communication and higher customer satisfaction. In the context of marketing, segmentation helps companies understand their audience better. For example, a clothing brand might segment its market into categories like age, gender, and lifestyle. This allows the brand to create targeted campaigns that resonate with each segment, ultimately driving sales and fostering brand loyalty.