In order to effectively run an organization, it is crucial to identify and segment the target audience. Market segmentation plays a vital role in identifying the right consumers for the products and services offered by different organizations. The objective is to identify a set of consumers who have similar buying preferences to the organization. This activity enhances the overall effectiveness of the market and enables marketing activities that provide complete satisfaction to employees. Market segmentation can be conducted to effectively segregate consumers based on their needs and guide organizations in the right direction.

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