How does market segmentation contribute to effective market analysis?

Market segmentation divides the market into smaller, more manageable segments based on various factors such as demographics, psychographics, and behavior. By identifying target customer groups, companies can tailor their marketing strategies and messages to meet the specific needs and preferences of each segment. This leads to more effective marketing campaigns, higher customer satisfaction, and ultimately, increased sales and profitability. Market segmentation also enables companies to allocate their resources more efficiently and focus their efforts on the most profitable segments.