A business segments the market in order to understand the similarities and differences in consumers' needs.

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Market segmentation is a process of dividing a larger market into smaller groups of consumers who have similar needs, characteristics, behaviors, or preferences. The purpose of segmentation is to enable companies to tailor their marketing mix to the needs of specific segments, thereby improving their marketing efficiency and effectiveness. By understanding the similarities and differences in consumers' needs, companies can develop more targeted marketing strategies and messages that resonate with their target customers.

A Business Segments the Market in Order to Understand the Similarities