Market Segmentation is the process of dividing a large customer/client base into smaller groups based on characteristics that you can leverage for more effective marketing. This can be as simple as dividing your customer base by gender and targeting them with more relevant products.
However, good use of this process will take more detailed, in-depth components into account. The four types of Market Segmentation are demographic, psychographic, geographic and behavioural.
You can utilise insights into each of these within your customer base, or prospective customers within the market, to target consumers based on their demographics (age, gender, religion, etc.), psychology (wants, needs, pain points, etc.), location (where they live or work) and behaviour (shopping habits).