refers to the criteria or factors used to divide a market into smaller groups of consumers with similar needs or characteristics.

• Divides the market based on variables like age, gender, income, education, occupation, etc.

• Divides the market by location, such as region, city, or country.

• – Divides the market based on lifestyle, personality, values, and interests.

• – Divides the market based on consumer behavior like buying patterns, usage, and brand loyalty.

generally larger markets are considered more attractive than small ones, since achieving economies of scale is more likely

growing markets are considered more attractive than stagnant or declining markets.

• this is normally derived by considering the market size and the costs for attracting these segments

in markets where price is the main driving factor for a purchase, margins of each sale will be small and volume would need to compensate for that.

 – when both distributors and end customers can exert high pressure on a supplier, they make a market segment unattractive as profit margins are reduced.