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A 
  is a group of people or organizations sharing one or more characteristics
that cause them to have similar product and/or service needs. A true market segment meets all
of the following criteria: it is distinct from other segments (different segments have different
needs), it is homogeneous within the segment (exhibits common needs); it responds similarly
to a market stimulus, and it can be reached by a market intervention. The term is also used
when consumers with identical product and/or service needs are divided up into groups so
they can be charged different amounts. These can broadly be viewed as 'positive' and
'negative' applications of the same idea, splitting up the market into smaller groups.

    
 
Successful segmentation requires the following

0‡ homogeneity within the segment

0‡ heterogeneity between segments
0‡ segments are measurable and substantial
0‡ segments are differentiable
0‡ segments are accessible and actionable
0‡ target segment is large enough to be profitable

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0‡ Seographic variables
ɇ region of the world or country, East, West, South, North, Central, coastal,
hilly, etc.
ɇ county size: Metropolitan Cities, small cities, towns.
ɇ Ýensity of Area Urban, Semi-urban, Rural.
ɇ climate Hot, Cold, Humid, Rainy.
0‡ Ýemographic variables
ɇ age
ɇ gender Male and Female
ɇ family size
ɇ family life cycle: young children, empty nest, etc
ɇ education Primary, High School, Secondary, College, Universities.
ɇ income
ɇ occupation
ɇ socioeconomic status
ɇ religion
ɇ nationality/race (ethnic marketing)
ɇ language
0‡ Psychographic variables
ɇ personality
ɇ lifestyle
ɇ value
ɇ attitude
0‡ gehavioral variables
 ɇbenefit sought
ɇproduct usage rate
ɇbrand loyalty
ɇproduct end use
ɇreadiness-to-buy stage
ɇbuying center
ɇprofitability
ɇincome status
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0‡ Technological segmentation variables
ɇ motivations
ɇ usage patterns
ɇ attitudes about technology
ɇ fundamental values
ɇ lifestyle perspective
ɇ standard of living
ɇ profit is there in business from the existing clients