Editing Market segmentation (section)

== Definition and brief explanation ==

Market segmentation is the process of dividing mass markets into groups with similar needs and wants.<ref>Pride, W., Ferrell, O.C., Lukas, B.A., Schembri, S., Niininen, O. and Cassidy, R., ''Marketing Principles, '' 3rd Asia-Pacific ed, Cengage, 2018, p. 200</ref> The rationale for market segmentation is that in order to achieve competitive advantage and superior performance, firms should: "(1) identify segments of industry demand, (2) target specific segments of demand, and (3) develop specific 'marketing mixes' for each targeted market segment. "<ref>Madhavaram, S., & Hunt, S. D., "The Service-dominant Logic and a Hierarchy of Operant Resources: Developing Masterful Operant Resources and Implications for Marketing Strategy, " ''Journal Of The Academy Of Marketing Science, '' Vol. 36, No. 1, 2008, pp 67-82.</ref> From an economic perspective, segmentation is built on the assumption that heterogeneity in demand allows for demand to be disaggregated into segments with distinct demand functions.<ref>Dickson, Peter R.; Ginter, James L., "Market Segmentation, Product Differentiation, and Marketing Strategy, " ''Journal of Marketing, '' Vol. 51, No. 2, 1987, p. 1</ref>