Businesses look for ways to connect with current and potential customers. The best way to make that connection is to know these people well. This means knowing where they live, their income level, age, ethnic background, activities, values and what interests them. When a company looks at its customers in this way, it can identity groups of people who have many things in common.
Marketers analyze groups of customers to see if any of them can be further broken down into smaller, more precise clusters. The process of classifying people who form a given market into even smaller groups is called market segmentation.

Key Terms:
Market Segmentation
Demographics
Disposable Income
Discretionary Income
Geographics
Psychographics
Mass Marketing

*Explain the concept of market segmentation
*Analyze a target market
*Differentiate between mass marketing and market segmentation.