Customer or market segmentation is the process of dividing large markets into smaller groups based on shared characteristics. The demand function of these smaller groups differs, and businesses can gain a competitive advantage by identifying and serving specific segments. Factors such as lifestyles, attitudes, values, beliefs, and culture can all be explored as a basis for segmentation. Porter’s generic strategies include cost leadership, differentiation, and focus. According to Porter, pursuing more than one strategy leads to resource waste. Differentiation involves developing different products/services for multiple segments. Focus means targeting only one specific segment. Undifferentiated strategy refers to developing a product that meets the needs of the largest number of buyers, often leading to cost leadership. Hyper-segmentation is the practice of dividing a target market into highly granular segments. Digital communication, social media, and the internet have enabled busin...