Define the term "market segment" and explain their significance in formulating an organization's strategies.

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A market segment is a subgroup of actual and potential customers within the overall market whose needs are similar to each other and also significantly different from the needs of customers in other subgroups.

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One purpose of strategies is to best position the organization's products and services to meet the needs of its customers. The larger the body of customers that the organization tries to serve, the more diverse their needs are likely to be and the more difficult it will be for the organization to meet them. One of the keys to strategic success is developing a set of resources and competencies that are the best possible fit with the needs of the targeted customers. It is easier to assemble such a set and apply it efficiently to a smaller group of customers with more homogenous needs. The process of "market segmentation" divides the overall market into numerous more manageable pieces. The strategists' task is to identify those segments that best match the organization's strategic assets, satisfy its key stakeholders, and move it toward achievement of its vision.

Define the Term "Market Segment" and Explain Their Significance in Formulating