What is Market Segmentation? Market segmentation is the process by which companies divide consumers into separate groups that share similar characteristics or needs. Because of these similarities, consumers within a particular market segment are likely to respond to similar marketing strategies and (144) . By identifying market segments, providers of goods or services are better able to determine appropriate pricing, distribution, sales and advertising strategies, and meet their customers' unique needs. The process of segmentation is (145) from targeting, which is the choice companies make about which market segments to address. The intent of market segmentation is to identify similar groups of consumers and understand their desires and behaviors. Targeting is a strategic choice that determines which of these market segments a company wishes to (146) and which the company may wish to ignore. (44)