Segmentation is the process of dividing a larger market or population into smaller, more manageable groups based on shared characteristics. These characteristics can include demographics, behaviors, preferences, or needs. By identifying these segments, businesses can tailor their products, services, and marketing strategies to better meet the specific demands of each group, leading to more effective communication and increased customer satisfaction. In the context of marketing, segmentation helps companies understand their target audience more clearly. For example, a clothing brand might segment its market by age, creating different lines for teenagers, young adults, and seniors. This approach allows the brand to design targeted campaigns that resonate with each age group, ultimately driving sales and brand loyalty.