Market segmentation is the process of dividing a broad target market into smaller, more defined groups of consumers. This allows businesses to tailor their products, services, and marketing strategies to meet the specific needs and preferences of each segment. Segmentation can be based on various factors, including demographics, psychographics, geographic location, and behavior. By understanding the unique characteristics of each segment, companies can improve their chances of reaching potential customers effectively. This targeted approach not only enhances customer satisfaction but also increases the efficiency of marketing efforts, ultimately leading to better sales and brand loyalty.