What is the definition of market segmentation?

Market segmentation is defined as the process of dividing a broader target market into subsets of consumers who have common needs, characteristics, or behaviors. This strategic approach allows marketers to tailor their products and services to meet the specific demands of different segments, leading to more effective marketing strategies. By understanding and segmenting the market, businesses can identify distinct groups of consumers, enabling them to create targeted marketing campaigns that resonate more deeply with each segment.

This process is essential as it enhances customer satisfaction and loyalty by ensuring that products and marketing messages are relevant to the specific preferences and needs of each segment. It can lead to improved operational efficiency and increased profitability, as companies can focus their resources on the most promising market segments.

The other options presented do not align with the definition of market segmentation. Promoting a product through various channels refers to marketing techniques rather than segmentation. Identifying a company's weaknesses and threats pertains to a SWOT analysis, and establishing brand equity involves building the value of a brand in the eyes of consumers, which also differs from the concept of segmentation.