Welcome to the Financial Times Lexicon

Browse thousands of words and phrases selected by Financial Times editors and suggest new terms for the glossary.


Term of the day

market segmentation

Technically, market segmentation is the process of dividing the population of possible customers into distinct groups. Those customers within the same segment share common characteristics that can help a firm in targeting those customers and marketing to them effectively (adapted from Lovelock and Wirtz 2011).

Segmentation is one of the most important concepts in marketing.  Firms vary widely in their abilities to serve different types of customers. Hence, rather than trying to compete in an...