Market segmentation refers to grouping customers into segments with distinct common characteristics, priorities, needs, behaviors, or values implying they will respond similarly to tailored marketing and sales approaches. Effective segmentation enables personalized messaging and interactions that resonate at scale.

Segmenting criteria may include demographics like industry, company size, and job role as well as psychographics such as attitudes, motivations, challenges, and buying behaviors. Continually refining segmentation over time through data analysis improves campaign relevance and sales conversion results.

Well-defined audience segments optimize budgets by focusing programs only on qualified subsets of the broader market with the highest propensity to purchase. Segment misalignments waste resources and limit sales.

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