Explain segmentation.

Segmentation is a process used in marketing that divides a broad target market into subsets of consumers who have common needs and priorities, and then designs and implements strategies to target them.

Step 1: Identify and name the broad market. This is the general market for your product. For example, if you're selling shoes, your broad market might be everyone who wears shoes.

Step 2: Identify and understand the needs of each segment. This involves researching your market to understand the different needs and behaviors of each segment. For example, some people might need shoes for running, while others might need them for work.

Step 3: Evaluate the potential commercial success of each segment. This involves assessing the size and profitability of each segment. For example, the market for running shoes might be larger and more profitable than the market for work shoes.

Step 4: Select target segment(s). This involves choosing which segment(s) to target with your marketing efforts. For example, you might choose to target the running shoe market if it's larger and more profitable.

Step 5: Design and implement a marketing mix strategy for each chosen target segment. This involves creating a marketing plan that includes product, price, place, and promotion strategies for each target segment. For example, you might design a different marketing mix for the running shoe market than for the work shoe market.